P 13-23 (similar to) 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 40% and collects the following information. If it plans to finance 14% 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 4.7%, a risk-free rate of 3.8%, and a market risk premium of 5.2% Beta CoffeeStop BF Liquors 0.63 0.27 % Equity 95% 86% % Debt 5% 14% 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.)