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Your company has two divisions. One division sells software and the other division sets computers through a direct sales channel primy taking orders over the

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Your company has two divisions. One division sells software and the other division sets computers through a direct sales channel primy taking orders over the internet You have decided to accants very similar to your computer division, in terms of both risk and financing You go online and find the following information Hewlett Packard's beta is 122. the rate is 48% its market value of guys 5657 bilion, and has $700 milion worth of debt with a yield to maturity of 5% Your tax rate is 25% and you use a market rik prorlum of 5.3% in your WACC estimated a. What is an estimate of the WACC for your computer sales division? b. M your overall company WACC is 11.8% and the computer sales division represents 40% of the value of your firm, wat is an estimate of the WACC for your software division Note: Assume that the firm will always be able to utice its full interest tax shield a. What is an estimate of the WACC for your computer sales division? The weighted average cost of capital for your computer sales division is (Roured to two decimal places)

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