your company has two divisions: one division sells software and the other division sells computers through a direct sales channel, primarily taking orders over the internet. You have decided that Garret Hackard is similar to yoir computer division, in terms of risking and financing. Garrt Hackard has a beta of 1.21, the risk free rate is 4.5%, its market value of equity is 67 billion and it has 700 million worth of debt with a yiled to maturity of 6%. Your tax rate is 25% and you use a market risk premium of 5% in you wacc sstimates.

a, what is an estimate of the wacc for your computer sales division? (round to two decimals)

b. if your overall comoany WACC is 12% and the computer sales division represents 40% of the value of your firm, what is an sstimate if the WACC for your software division? (round to two decimals)