Swizer industries has two separate divisions. Division X has less risk so its projects are assigned a discount rate equal to the firms WACC minus 3 percent. Division Y has more risk and its projects assigned a rate equal to the firms WACC plus 4 percent. The company has a debt equity ratio of .55 and a tax rate of 30 percent. The cost of equity is 11.67 percent and the after-tax cost of debt is 5.0 percent. Presently, each division is considering a new project. Division Ys project provides a 12.0 percent rate of return and division Xs project provides a 7.0 percent return. Calculate the companys WACC (rounded to the nearest tenth percent).

Group of answer choices

12.3 percent

9.3 percent

13.3 percent

6.3 percent

5.3 percent

WACC for Division X.

WACC for Division Y.

which projects should the company accept?