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Your company has two divisions. One division sells software and the other division seis computers through a direct des channel, primary taking orders over the

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Your company has two divisions. One division sells software and the other division seis computers through a direct des channel, primary taking orders over the internet. You have decided that Dell Computer sery similar to your computer division, in terms of both risk and financing. You go online and find the folowing information Delle betes 124 425 mare value of 072 bilion, dit has 3003 milion worth of debt with a yield to maturity of 62%. Your tax rate is 30% and you use a menik premium of 6 in your WACC smals a. What is an estimate of the WACC for your computer sales division b. If your overall company WACC IS 12.6% and the computer ses division represents 40% of the value of your fem. What is an estimate of the WACC for your software Vision? Note: Assume that we will always be able to utilize its full interest taxshi

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