Dinklage Corp. has 7 million shares of common stock outstanding. The current share price is $79, 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 $70 million, a yield to maturity of 8.60 percent, and sells for 94 percent of par. The second issue has a face value of $40 million, a yield to maturity of 7.53 percent, and sells for 107 percent of par. The first issue matures in 23 years, the second in 6 years. Suppose the most recent annual dividend was $5.10 and the annual dividend growth rate is 9 percent. The tax rate is 34 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 YTMs 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

%