1. A Toys Company has 1.4 million shares in issue. The current market price is $22 per share. The companys debt is publicly traded on the London Stock Exchange and the most recent quote for its price was at 90% of face value. The debt has a total face value of $6 million and the companys credit risk premium is currently 2.4%. The risk-free rate is 3.4% and the equity market risk premium is 7.3%. The companys beta is estimated at 1.1 and its corporate tax rate is 32%.

Required: Calculate the companys WACC.