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Your company has two divisions: One division sells sotware and the othor division sels computers through a direct sales charnel, primatily taking orders over the

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Your company has two divisions: One division sells sotware and the othor division sels computers through a direct sales charnel, primatily taking orders over the internet. You have decided that Hewest Packard is very simiar to your computer division, in terms of both riak and financing You go onlino and find the following information: Hewlett Packard's beta is 1.24, the risk-tree rate is 4.4%. its market value of equity is 566.8 billon, and it has $700 milion worth of debt with a yiold to maturity of 6.4%. Your tax rate is 21% and you use a market risk premium of 5.1% in your Wace. esimales. a. What is an estimste of the WaCC for your computer seles division? b. If your overall company WACC is 125% and the computer sales division represents 39% of the value of your firm, what is an estimate of the WacC for your scftware division? Note Assume that the trm will always be able to utilie is tul interest tax shield. a. What is sa estimate of the WaCC for your computer sales division? The woighted average cost of capital for your corroutor sales divition is \%. (Round to two decimal places)

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