Dinklage Corp. has 5 million shares of common stock outstanding. The current share price is $71, and the book value per share is $6.

The company also has two bond issues outstanding. The first bond issue has a face value of $65 million, a yield to maturity of 6.35 percent, and sells for 96 percent of par. The second issue has a face value of $45 million, a yield to maturity of 5.83 percent, and sells for 105 percent of par. The first issue matures in 21 years, the second in 5 years.

Suppose the most recent dividend was $4.30 and the annual dividend growth rate is 5 percent. The tax rate is 35 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 YTM's 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 ________%