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What is the pistol? division wacc

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Colt Manufacturing has two? divisions: 1)? pistols; and? 2) rifles. Betas for the two divisions have been determined to be beta ?(pistol)=0.6 and beta ?(rifle)=0.9. The current? risk-free rate of return is 2.5?%, and the expected market rate of return is 9.5%. The? after-tax cost of debt for Colt is 7.5?%. The pistol? division's financial proportions are 40.0?% debt and 60.0?% ?equity, and the rifle? division's are 50.0?% debt and 50.0?% equity.

Question 1: What is the pistol? division's WACC?

Question 2: What is the rifle? division's WACC?

Reference no: EM132873776

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