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Dinklage Corp. has 9 million shares of common stock outstanding. The current share price is $75, and the book value per share is S6. The
Dinklage Corp. has 9 million shares of common stock outstanding. The current share price is $75, and the book value per share is S6. The most recent annual dividend, paid this morning, was $4.70 and the dividend growth rate is 6 percent. The company also has two bond issues outstanding. The first bond issue has a face value of $85 million, a coupon rate of 10%, a yield to maturity of 10.45%, and sells for 96 percent of par. The second issue has a face value of $65 million, a coupon rate of 11%. a yield to maturity of 9.49%. and sells for 109 percent of par. The first issue matures in 25 years, the second in 9 years The tax rate is 34 percent. Calculate the company's WACC. Start by calculating the capital structure weights. Next, calculate the cost of equity and cost of debt to get the WACC
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