Dani Corporation has 3.9 million shares of common stock outstanding. The current share price is $87.50, and the book value per share is $10.25. The company also has two bond issues outstanding. The first bond issue has a face value of $77 million, a coupon rate of 5.5 percent, and sells for 96.1 percent of par. The second issue has a face value of $49 million, a coupon rate of 5.9 percent, and sells for 105.7 percent of par. The first issue matures in 21 years, the second in 10 years. The most recent dividend was $4.16 and the dividend growth rate is 4.7 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 22 percent.

What is the companys cost of equity?

Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.

What is the companys aftertax cost of debt?

Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.

What is the companys weight of equity?

Note: Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.

2. You are given the following information concerning Parrothead Enterprises:

Debt	9,400 7.2 percent coupon bonds outstanding, with 24 years to maturity and a quoted price of 108.25. These bonds have a par value of $2,000 and pay interest semiannually.
Common stock:	325,000 shares of common stock selling for $66.50 per share. The stock has a beta of 1.10 and will pay a dividend of $4.70 next year. The dividend is expected to grow by 5.5 percent per year indefinitely.
Preferred stock:	10,000 shares of 4.75 percent preferred stock selling at $96.00 per share.
Market:	10.5 percent expected return, a risk-free rate of 4.60 percent, and a 25 percent tax rate.

What is the firm's cost of each form of financing?

Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.

Calculate the WACC for the company.

Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.