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what is B? Score: 0 of 2 pts 14 of 16 (13 completel HW Score: 80.77%, 21 of 26 pts Problem 12-24 Question Help Your

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Score: 0 of 2 pts 14 of 16 (13 completel HW Score: 80.77%, 21 of 26 pts Problem 12-24 Question Help Your company has two divisions: One division sells software and the other division sets computers through a direct sales channel, primarily taking orders over the internet. You have decided that Dell Computer is very similar to your computer division, in terms of both risk and financing You go online and find the following information Dolls bota is 1.16, the risk free rate is 4.5%, its Market value of equity is $86.7 bilion, and has $703 million worth of debt with a yield to maturity of 5.6% Your tax rate is 35% and you use a market risk premium of 5.9% in your WACC olmas a. What is an estimate of WACC for your computer sales division If your event company WACCI 12 and 11e comer en division represents 25% of the value of your fem. what is an estimate of the way for your software division? Now Asume the firm will always be able to tra finore tax shield What is an estimate of the WACC for your computer sales division? The wend worage cost of capital for your computer sales choision in 11.28% (Round to no decimal places) b. ll your everal company WACC # 12.9% and the computer sales division represents 35% of the value of your firm, what is an estimate of the WACC for your software division? The WACC for your software divinion : 1. Round to two decimalt place.)

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