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Forecast KMS's free cash flow, assuming KMS's market share will increase by 0.26% per year, investment, financing, and depreciation will be adjusted accordingly; and working capital will be as given the table The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. The free cash flow in 2019 will be $ 8594 thousand. (Round to the nearest integer.) The free cash flow in 2020 will be $ 6942 thousand. (Round to the nearest integer.) The free cash flow in 2021 will be $ - 14492 thousand. (Round to the nearest integer.) The free cash flow in 2022 will be $ 6697 thousand. (Round to the nearest integer.) The free cash flow in 2023 will be $ 8045 thousand. (Round to the nearest integer.) The free cash flow in 2024 will be $ 9457 thousand. (Round to the nearest integer.) Your company has two divisions: One division sells software and the other division sells computers through a direct sales channel, primarily taking orders over the internet. You have decided that Hewlett Packard is very similar to your computer division, in terms of both risk and financing. You go online and find the following information: Hewlett Packard's beta is 1.15, the risk-free rate is 4.3%, its market value of equity is $65.3 billion, and it has $707 million worth of debt with a yield to maturity of 6.3%. Your tax rate is 25% and you use a market risk premium of 5.4% in your WACC estimates. a. What is an estimate of the WACC for your computer sales division? b. If your overall company WACC is 11.7% and the computer sales division represents 35% of the value of your firm, what is an estimate of the WACC for your software division? Note: Assume that the firm will always be able to utilize its full interest tax shield. a. What is an estimate of the WACC for your computer sales division? The weighted average cost of capital for your computer sales division is %. (Round to two decimal places.) b. If your overall company WACC is 11.7% and the computer sales division represents 35% of the value of your firm, what is an estimate of the WACC for your software division? The WACC for your software division is % (Round to two decimal places.)