Question 5 InstaHam is a service that provides you with an endless feed of free bacon, but generates revenue by selling your private data to otherfirits remaining:1 and to foreign governments looking to influence election results. Suppose the firm faces a tax rate of 22.5%. Marked out of The firm recently created a new internal division focused on extracting revenue more directly from its users through a combination of 13.00 premium honey-glazed bacon subscription and bespoke PPH (pay-per-ham) services. You have collected the following data tor instaHis and for another firm, OnlyHams, which you believe to be a fitm similar in characteristics to this new division and that soecializes only in that premium subscription / PPH market: InstaHam plans to finance 8.00% of the new division with debt and the rest with equity Assume a cost of debt of 8.00%, a risk-free rate of 4.70%, and a market risk premium of 10.20%. A) What is the Weighted Average Cost of Capital (WACC) that instaHam should use when evaluating projects in the new subscrotion i oay. ber-ham division? (Round your answer to 2 decimat places) Your last answer was interpreted as follows: 10.64 incorrect answer. HiNTI This entire topic is about the retatinship between the risk of an investment and its return - whare investors accept iower rates of watam Tor lower-risk investments, while thoy must be compensated with higher rater of retum to incentivize them to invent in a figheraisk investrment. This is true bothat the ievel of an individual investor making investments and at the level of a corporation making capital tudgeting investment decision