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

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Your company has two divisions. One division sells software and the other division sells computers through a direct sales channel pomaly 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 Delfs beta is 116, the streets, market value of equity is 566 2 bilion and it has 5705 million worth of debt with a yield to maurity of 6.1 Your tax rate is 30and you use a market is premium of 5,3% in your WACC estimates a. What is an estimate of the WACC for your computer sales division? b. If your overall company WACC 117 and the computer sales division represents 43 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 be its to 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 (Round to two decimal pace b. If your overall company WACC IS 117 and the computer sales division represents 43% of the value of your what an estimate of the WACC for your software division The WACC for your software division is IN (Round to two decimal places)

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