Colt Manufacturing has two divisions: 1) pistols; and 2) rifles. Betas for the two divisions have been determined to be beta (pistol) = 0.8 and beta (rifle) = 1.0. The current risk-free rate of return is 3%, and the expected market rate of return is 8%. The after-tax cost of debt for Colt is 4.5%. The pistol division's financial proportions are 32.5% debt and 67.5% equity, and the rifle division's are 42.5% debt and 57.5% equity. a. What is the pistol division's WACC? b. What is the rifle division's WACC? a. What is the pistol division's WACC? 1% (Round to two decimal places.) b. What is the rifle division's WACC? 1% (Round to two decimal places.)