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Your job is to help Sterling's management decide whether to acquire the Montagne Medical germicidal, sanitation, and antiseptic products unit at the proposed price.

Your job is to help Sterling's management decide whether to acquire the Montagne Medical germicidal, sanitation, and antiseptic products unit at the proposed price. \ The decision will be divided into two parts. This part consists of estimating the WACC. \ Estimate the (single) weighted average cost of capital that is appropriate for discounting the units incremental cash flows. You should estimate and present each component of the WACC separately, explaining briefly but clearly what assumptions you are making for each of them. As usual, the aim is not to make the right assumption, but rather for you to provide answers consistent with your assumptions. Perform some sensitivity analysis by changing the capital structure.

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