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Quazar Industries is made up of two separate divisions. Division X, on average, presents less risk so its projects are assigned a discount rate equal

Quazar Industries is made up of two separate divisions. Division X, on average, presents less risk so its projects are assigned a discount rate equal to the firm's WACC minus 2.35 percent. Division Y has more risk and its projects are assigned a rate equal to the firm's WACC plus 1.4 percent. The company has a debt-equity ratio of 0.72 and a tax rate of 24 percent. The cost of equity is 15.3 percent and the aftertax cost of debt is 9.8 percent. What discount rate should be assigned for Division X and for Division Y?

Division X: %

Division Y: %

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