1. A Toys Company has 0.8 million shares in issue. The current market price is $60 per share. The companys debt is publicly traded on the London Stock Exchange and the most recent quote for its price was at 92% of face value. The debt has a total face value of $ 10 million and the companys credit risk premium is currently 2.8%. The risk-free rate is 3.5% and the equity market risk premium is 7.1%. The companys beta is estimated at 1.3 and its corporate tax rate is 32%.

Required: Calculate the companys WACC.