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Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $85, 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 $85, 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 $65 million, a yield to maturity of 8.50 percent, and sells for 95 percent of par. The second issue has a face value of $40 million, a yield to maturity of 7.07 percent, and sells for 108 percent of par. The first issue matures in 23 years, the second in 5 years. Suppose the most recent annual dividend was $5.70 and the annual dividend growth rate is 4 percent. The tax rate is 38 percent. Calculate the company's WACC. Start by calculating the firm's market value. (Enter vour answer as a dollar amount, not millions of dollars, Le. enter one million as 1,000,000 ) 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 \% 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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