20 = $87.5 million CoffeeStop primarily sells coffee. It recently introduced a premium coffee-flavoured liqueur. wwwwww...

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20 = $87.5 million CoffeeStop primarily sells coffee. It recently introduced a premium coffee-flavoured liqueur. wwwwww Suppose the firm faces a tax rate of 30% and collects the following information. If it plans to finance 11% of the new liqueur-focused division with debt and the rest with equity, what WACC should it use for its liqueur division? . Assume a cost of debt of 4.8%, a risk-free rate of 3% and a market risk premium of 6%. CoffeeStop BF Liquors Beta 0.61 0.26 (CoffeeStop): rf+B (Rmkt-rf) = 0.03 + 0.61 (0.06 -0.03) = 0.0483 (BF Liquors): rf+B (Rmkt rf) = 0.03 + 0.26 (0.06 -0.03) = 0.0483 - Equity (%) I 96 Debt(%) 4 89 11 20 = $87.5 million CoffeeStop primarily sells coffee. It recently introduced a premium coffee-flavoured liqueur. wwwwww Suppose the firm faces a tax rate of 30% and collects the following information. If it plans to finance 11% of the new liqueur-focused division with debt and the rest with equity, what WACC should it use for its liqueur division? . Assume a cost of debt of 4.8%, a risk-free rate of 3% and a market risk premium of 6%. CoffeeStop BF Liquors Beta 0.61 0.26 (CoffeeStop): rf+B (Rmkt-rf) = 0.03 + 0.61 (0.06 -0.03) = 0.0483 (BF Liquors): rf+B (Rmkt rf) = 0.03 + 0.26 (0.06 -0.03) = 0.0483 - Equity (%) I 96 Debt(%) 4 89 11