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, has a 6 percent coupon, and sells for 96 percent of par. The second Issue has a face value of $45 million has a 7 percent coupon, and sells for 105 percent of par. The first issue matures in 21 years the second in 5 years. The most recent dividend was $4.3 and the dividend growth rate is 5 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 35 percent What is the company's WACC? Me Choice 620 685 Consider the following information for Watson Power Co. Debra Common stock 6,000 6 percent coupon bonds outstanding. $1.000 par value, 20 years to maturity, selling for 105 percent of par the bonds make semiannual payments. 138,000 shares outstanding, selling for $57 per share the beta Is 1.06. 18,000 shares of 5 percent preferred stock outstanding. currently selling for $108 per share. 7 percent market risk premium and 4 percent risk-free rate Preferred stock: Market Assume the company's tax rate is 34 percent Find the WACC Muitle Choice 7583