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Please Answer each section: Your company has two division One division sells software and the other division sets computers through a direct sales channel, primarily
Please Answer each section:
Your company has two division One division sells software and the other division sets computers through a direct sales channel, primarily taking orders over the internet You have decided that will computer is very similar to your computer division, in terms of both risk and financing. You go online and find the following information Dells bete is 123, the nisk free rate is 48% to market value of equity 50 bition and the soos millon worm of debt with a yield to maturity of 6.5% Your tax rates 35% and you use a marvet risk premium of $15 n your WACC estimates a. What is an imate of the WACC for your computer als division? b. If your overall company WACC 11.5% and the computer sales division represents 37% of the value of your fem, what is an estimate of the WACC for your software divin? Note: Assume that the form will always be able to utzitstort taxshield What is an estimate of the WACC for your computer les division The weighted average cost of capital for your computer se division 1 (Hound to two decimal places Step by Step Solution
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