Your company has two divisions: One division sells sofware and the other divaion sells computers through a drect sales channel, primanly taking orders over the intemet. You have decided that Hewen Packsrd is very simiar to your compuler divilon, in terms of both risk and financing. You go online and find the follosing information: Hewlett Packard's bota is 1 . 16 , the risk-free rate is 4.9%, its maket value of equity is $67.6 bilion, and it has $705 million worth of dobt with a yiold to maturity of 5.6%. Your tax rate is 21% and you use a market risk premium of 5.4% in your WACc estimales. a. What is an estimate of the WaCC for your compuser sales division? b. If your overal compary WACC is 129% and the computer sales divion represents 44% of the value of your fim, what is an estimate of the WaCC for your software division? Note: Assume that the frm will always be able to uilize its full interest tax shiold. a. What is an eslimate of the WaCC for your computer males division? The whighted averege cost of captal for your computer sales division is K. (Rhound to two decimal paces.) b. Hy your overal company WACC is 12.9% and the computer sales division represents 44% of the value of your firm, what is an estimale of the WACC for your softivare division? The Wacc lor your sotware oviaion is 4. (Round to two decimal places.)