FIN 36U-42 Kyle Huy 12/3/19 12:35 AM Save Homework: MFL 13 Score: 0 of 1 pt P 13-23 Updated (book/static) 12 of 14 (8 complete) HW Score: 50%, 7 of 14 pts A Question Help O Coffee Stop primarily sells coffee. It recently introduced a premium coffee-flavored liquor (BF Liquors). Suppose the firm faces a tax rate of 25% and collects the following information. If it plans to finance 11% of the new liquor-focused division with debt and the rest with equity, what WACC should it use for its liquor division? Assume a cost of debt of 4.8%, a risk-free rate of 3.0%, and a market risk premium of 6.0%. Coffee Stop BF Liquors Beta 0.61 0.26 % Equity 96% 89% % Debt 4% 11% Note: Assume that the firm will always be able to utilize its full interest tax shield. The weighted average cost of capital is %. (Round to two decimal places.) sti sti Asti