a.A Toys Company has 1.4 million shares in issue. The current market price is $45 per share. The company's debt is publicly traded on the New York Stock Exchange and the most recent quote for its price was at 95% of face value. The debt has a total face value of $ 7 million and the company's credit risk premium is currently 2.7%. The risk-free rate is 3.2% and the equity market risk premium is 6.8%. The company's beta is estimated at 1.1 and its corporate tax rate is 35%.

Required: Calculate the company's WACC.