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Problem 11-27 Divisional WACCs (LG11-7) Suppose your firm has decided to use a divisional WACC approach to analyze projects. The firm currently has four divisions,

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Problem 11-27 Divisional WACCs (LG11-7) 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 0.5,10,12 and 15 , respectively. Assume all current and future projects will be financed with 50 percent debt and 50 percent equity, the current cost of equity (based on an average firm beta of 10 and a current risk-free rate of 8 percent) is 13 percent and the after-tax yleld on the company's bonds is 9 percent. What will the WACCs be for each division? (Round your answers to 2 decimol places.)

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