Dinklage Corp. has 10 million shares of common stock outstanding. The current share price is $82, and the book value per share is $5.

The company also has two bond issues outstanding. The first bond issue has a face value of $85 million, a yield to maturity of 5.24 percent, and sells for 97 percent of par. The second issue has a face value of $55 million, a yield to maturity of 5.29 percent, and sells for 105 percent of par. The first issue matures in 20 years, the second in 9 years.

Suppose the most recent annual dividend was $5.40 and the annual dividend growth rate is 6 percent. The tax rate is 38 percent. Calculate the companys WACC.

Start by calculating the firm's market value. (Enter your answer as a dollar amount, not millions of dollars, i.e. enter one million as 1,000,000)

Firm's Market Value (debt & equity) $_____

Now calculate the firm's cost of equity and after-tax cost of debt. (Enter your answers as percent rounded to two decimals. Assume the YTMs are quoted as an EAR, not an APR.)

Cost of Equity ____%

After-tax Cost of Debt ____%

Now calculate the WACC. (Don't round your intermediate steps and enter your answer as a percent rounded to two decimals.)

WACC ____%