ACC and Crib- Tick, Inc., makers of baby furniture, are traded publicly on the NYSE. Currently, the anding. Crib-icks latest earnings were $2.09 per share, and next years expected to let value of Crib-Tick common stock is $14 per share, and there are 4 million shares term bonds of dividendis be $1.02 per share. Five years ago, Crib-Tick paid a dividend of $0.72 per Crib-Tick has long-term bonds with a total market value of $30 million. The bonds share. ture in 11 years and have an 8% coupon. They are currently selling for $880. (Assume bonds have 22 more coupon payments until maturity.) In addition to long-ter bonds, Crib-Tick has mil ties Current market conditions are , $5 million in notes payable and 10 million in other current liabili- 13.75%. Crib lick has a beta of 1 1, andipays corporate taxes at a rate of 30%. Estimate Crib-Tick's WACC. = 6% and rM