Module $9$ Homework

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Suppose your firm has decided to use a divisional WACC approach to analyze projects. The firm currently has four divisions, A through $D,$ with average betas for each division of $0\mathrm{.}8,1\mathrm{.}1,1\mathrm{.}5,$ and $1\mathrm{.}7,$ respectively. Assume all current and future projects will be financed with $20$ percent debt and $80$ percent equity, the current cost of equity $($based on an average firm beta of $1\mathrm{.}3$ and a current risk$-$free rate of $5$ percent$)$ is $14$ percent and the after$-$tax yield on the company's bonds is $10$ percent.

What will the WACCs be for each division? $($Do not round intermediate calculations. Round your final answers to $2$ decimal places.$)$