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Dinklage Corp. has 9 million shares of common stock outstanding. The current share price is $ 8 1 . The company also has two bond
Dinklage Corp. has million shares of common stock outstanding. The current share price is $ The company also has two bond issues outstanding. The first bond issue has a face value of $ million, a coupon rate of percent, and sells for percent of par. The second issue has a face value of $ million, a coupon rate of percent, and sells for percent of par. The first Issue matures in years, the second in years.
Suppose the most recent dividend was $ and the dividend growth rate is percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is percent. What is the company's WACC? Show all your work, including intermediary steps.
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