D Question 13 Your company is made up of two divisions. Division 1 comprises 40 percent of the comparry comparry as while Division 2 makes up 60 percent of the company. The levered beta for the a whole is equal to 1.20 and the company's debt/value ratio is 50 percent (you may assume that appropriate values for Division 1 and 2 are also 50 percent). If thte risk-free rate is 3.0 percent, the market risk premium is 12.00 percent, the marginal tax rate is 40 percent, and the before-tax cost of debt is 8.00 percent then, as you can calculate, the WACC for the company is 11.10 percent As you can also calculate, using the Hamada equations, the unlevered beta for the company as a whole is 0.75. Now assume that other "pure' companies equivalent to Division 2 have an average unlevered beta of 0.52. Using this proxy to determine (back out) the unlevered beta for Division 1, re-lever both betas, calculate the corresponding cost of equity, and then determine the appropriate WACC for each division. (For the purposes of levering and un-levering betas, you may use the H assume that the beta for debt is equal to zero.) Glven this information, determine the appropriate WACC for Division 1. for Division 2s unlevered beta, you should be able amada equations and Answer is decimal format, out to three decimal places. For example, if your answer is 18.225%, enter "0.182