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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 9 million shares of common stock outstanding. The current share price is $81. The company also has two bond issues outstanding. The first bond issue has a face value of $130 million, a coupon rate of 6 percent, and sells for 92 percent of par. The second issue has a face value of $115 million, a coupon rate of 5 percent, and sells for 103 percent of par. The first Issue matures in 24 years, the second in 10 years.
Suppose the most recent dividend was $4.85 and the dividend growth rate is 5.2 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 22 percent. What is the company's WACC? Show all your work, including intermediary steps.
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