1. A Toys Company has 4.6 million shares in issue. The current market price is $6 per share. The companys debt is publicly traded on the London Stock Exchange and the most recent quote for its price was at 80% of face value. The debt has a total face value of $ 8 million and the companys credit risk premium is currently 2.3%. The risk-free rate is 3.7% and the equity market risk premium is 7.3%. The companys beta is estimated at 0.8 and its corporate tax rate is 25%.

Required: Calculate the companys WACC.