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Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $78, and the book value per share is $5. The

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Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $78, 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 $65 million, a yield to maturity of 718 percent, and sells for 98 percent of par. The second issue has a face value of $35 million, a yield to maturity of 6.57 percent, and sells for 106 percent of par. The first issue matures in 22 years, the second in 5 years. Suppose the most recent annual dividend was $5.00 and the annual dividend growth rate is 8 percent. The tax rate is 30 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, n- 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 round WACC to two decimals)

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