The company has 2 divisions (A and B), which capital for 40% consists of long-term liabilities, for 6% for preferred shares, the rest part is financed from common shares. The debt capital costs are equal to 11%. Corporate income tax is 20%. The cost of financing using preferred shares is 13%.

You know the following information about common stocks A and B and the market: A has co-variance with the market equal to 0,041; B has co-variance for the market equal to 0,019; the standard deviation of market returns is equal to 27%; risk-free rate is equal to 6%; the average return of market portfolio is 10%.

Calculate WACC for each division, using CAPM.