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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) = 0.5 and beta ​(rifle)=1.1. The current​ risk-free rate of return is 3​%, and the expected market rate of return is 10%. The​ after-tax cost of debt for Colt is 4.5​%. The pistol​ division's financial proportions are 35.0​% debt and 65.0​% ​equity, and the rifle​ division's are 45.0​% debt and 55.0​% equity.

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

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

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