Problem 6) (18) Assume UNR inc. wants you to calculate WACC of its Software Development (SD) division. The SD division's beta is unknown. But you are given the following information about the firms that are comparable to the SD division. Ticker Beta Market leverage MSFT 2.4 50% GOOGL 2.5 75% IBM 1.2 30% . Spread between S&P 500 Composite Returns and Long-Term U.S. Government Bond Returns is 9%. S. Government Interest Rates on 30-year bond is 4%. UNR inc.'s Software Division's Debt Rate Premium above Government is 3%. Tax rate is 30%. a. Assume that target capital structure of SD is 40% debt and 60% equity. What is the WACC of the SD division, under target capital structure? b. Assuming SD division's next year free cash flow is $45M (FCF2=45M) and it will grow at 8% forever. Estimate SD division's value under the target capital structure with 40% debt and 60% equity c. Assuming SD division's next year free cash flow is $45M (FCF2=45M) and it will grow at 8% forever. Estimate SD division's value under the target capital ructure with no debt financing (0% debt)