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 HP Inc. is very similar to your computer$$ division, in terms of both risk and financing. You go online and find the following$$ information: HP$\text{'}$s beta is $,$ the$$ risk$-$free rate is $,$ its market value of equity is $$billion$,$ and it has million worth of debt with a yield to maturity of $.$ Your tax rate is and you use a market risk premium of in your WACC estimates.

a$.$ What is an estimate of the WACC for your computer sales$$ division?

b$.$ If your overall company WACC is $,$ and the computer sales division represents 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.