Oliver Benford, CFO of haircare product conglomerate HCI, is evaluating a potential sale of the Hair Dryer Division (HDD).

Enter the appropriate amounts in the associated cells. Round percentages to the nearest hundredth and dollars to the nearest whole dollar. Select from the option list provided whether Benford should recommend the sale.

Question	Answer
1. Using the capital asset pricing model (CAPM), what is HDD's cost of equity (as a percentage)?
2. What is HDD's cost of debt (as a percentage)?
3. What is HDD's weighted-average cost of capital (WACC) (as a percentage)?
4. Using the discounted cash flow analysis and the WACC, calculate the market value of HDD.
5. After analyzing the available information, should Benford recommend selling HDD?