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Colt Manufacturing has two​ divisions: 1)​ pistols; and​ 2) rifles. Betas for the two divisions have...

Colt Manufacturing has two​ divisions: 1)​ pistols; and​ 2) rifles. Betas for the two divisions have been determined to be beta ​(pistol)equals=0.4 and beta ​(rifle)equals=0.8

The current​ risk-free rate of return is 11​%,and the expected market rate of return is 8%. The​ after-tax cost of debt for Colt is 77​%.The pistol​ division's financial proportions are 32.5​% debt and 67.5 ​equity, and the rifle​ division's are 42.5​% debt and 57.5​% equity.

a. What is the pistol​ division's WACC?

b. What is the rifle​ division's WACC?

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