#8

An analyst is trying to determine the capital structure for Big Dawg Incorporated. After some careful research, the analyst knows the following:

--Big Dawg has 1.69 million shares of common stock trading today at $20.28 per share. The book value of Big Dawg common stock is $15.00 million. The cost of equity for the firm is estimated to be 13.00%.

--Big Dawg has $7.00 million in long-term debt on its balance sheet. The debt is trading at 94.00% of face value in the market with a yield to maturity of 10.00%. The tax rate facing the firm is 39.00%.

What is the WACC for Big Dawg Incorporated?