How to find WACC of a company with multiple divisions? Question number 5 of document. Please show steps, im confused on getting the value of equity and required rate of return of equity (value of shares and the required return of such shares). For the debt of both companies, I found R-unlevered when ytm (return of debt) was 8% (assumption as debts issued at par), then found the new Re with that value and ytm @ 9% for the new return on the debts. Now how do I find value of equity and its required rate of return etc to then calculate WACC?

5. Greengrow Lawn Care (GLC) Inc. is an importer, manufacturer and distributor of natural (organic) lawn care products from around the world. The company is privately owned. Of the 500,000 shares outstanding, 450,000 are owned by the founder of the company, Ann Verka. The rest are owned by various employees. GLC has a perpetual debt with a par value of $2.5 million and coupon rate of 8 percent. However, interest rates have increased and now the debt has a 9 percent yield-tomaturity. Annual before-tax operating cash ows for the year just ended were $1.5 million. The corporate tax rate was 35 percent. You have recently been hired as the new CFO. Your assistant has provided you with some information: Company to Debt/Equity Current Debt Ratio Yield-to- Maturit All Lawn Chemicals Foods manufacturer and 15.9 .3 9.0% distributor of standard and organic lawn chemicals Integrated Manufacturing its chemical 12.5 .4 9.0% division manufactures lawn chemicals, accounting for 15% of Integrated's total sales. Other divisions include clothing and steel manufacturin ; . Assume that markets are perfect except for the existence of corporate taxes of 35%. Estimate the current WACC for GLC. Make clear any assumptions you make and explain why they are reasonable