The following calculations and questions is Fiona INC. Fiona currently is a software firm but is considering expanding into producing laptop customers. In its current form, Fiona has a WACC of 9.4% and they have a target capital structure of 30% and 70% equity.Fiona also has a tax rate of 20%. Fiona Inc realizes that using its current WACC is to evaluate an expansion into this new line of business is not good practice. Therefore, it has gathered data on two firms that do manufacture laptops to guide their calculations of an appropriate cost of capital. Using this data, calculate a cost of equity for Fiona's proposed expansions into computer manufacturing. Dell and Hewlett-Packard have a tax rate of 30%. Assume a risk free rate of 3.0% and a market risk premium of 7%. Company MV- Equity (B) BV Debt(B) Levered Beta Dell $30.6 $28.2 0.99 Hewlett-Packward $21.0 $13.7 1.20 If Fiona's pre tax cost of debt is 6% for their laptop divisions and their tax rate is 20%, what is the cost of capital(WACC) they should use to evaluate this expansion?(6 points)