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Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $89, and the book value per share is $8. The

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Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $89, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $85 million, a yield to maturity of 6.35 percent, and sells for 96 percent of par. The second issue has a face value of $60 million, a yield to maturity of 5.71 percent, and sells for 109 percent of par. The first issue matures in 21 years, the second in 9 years. Suppose the most recent annual dividend was $6.10 and the annual dividend growth rate is 8 percent. The tax rate is 35 percent. Calculate the company's 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.) Now calculate the WACC. (Don't round your intermediate steps and enter your answer as a percent rounded to two decimals.) WACC \%

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