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 intemet. 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: Dell's beta is 1.21, the risk-free rate is 4.8%, its market value de equity is $66.7 billion, and it has 5690 million worth of debt with a yield to maturity of 5.5%. Your tax rate is 35% and you use a market risk premium of 5.8% in your WACC estimates. a. What is an estimate of the WACC for your computer sales division? 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 % (Round to two decimal places.) U DITU HIU LIU TUIUWI HUDU. U budio 1.2, VIA IV 1.070, RUE VIU U yunyi UU. HIVI, ITU HUU million worth of debt with a yield to maturity of 5.5%. Your tax rate is 35% and you use a market risk premium of 5.8% in your WACC estimates. a. What is an estimate of the WACC for your computer sales division? b. If your overall company WACC is 12.5% and the computer sales division represents 38% of the value of your firm, what is an estimate of the WACC for your software division? Note: Assume that the firm will always be able to utilize its full interest tax shield. b. If your overall company WACC is 12.5% and the computer sales division represents 38% of the value of your firm, what is an estimate of the WACC for your software division? The WACC for your software division is % (Round to two decimal places.) Enter your answer in each of the answer boxes