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Your conpany has two divisions: One division sells soffware and the other division sols computers through a direct sales channet, primarily taving orders over the

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Your conpany has two divisions: One division sells soffware and the other division sols computers through a direct sales channet, primarily taving orders over the intemet. You have deciled that Hewlets Packard a very similar to your compuler division, in terma of both risk and financing. You go ontine and find the folowing informations Hewlent Pachard's beta is 1.22, the risk-fres rate is estrinates. a. Whar is an estimate of the WACC for your compuler sales division? b. If your overal company WACC is 12.6% and the compulor sales divilion represents 40% of the value of your fim, what is an estimate of the WACC for your sothware division? Nole: Assume that the firm will always be able to utilize its full interest tax shield

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