Pandora Manufacturing has $7\mathrm{.}6$ million shares of common stock outstanding. The current

share price is $$46,$ and the book value per share is $$3.$ The company also has two bond

issues outstanding. The first bond issue has a face value of $$68\mathrm{.}6$ million and a coupon

rate of $6\mathrm{.}3$ percent and sells for $109$ percent of par. The second issue has a face value of

$$58\mathrm{.}6$ million and a coupon rate of $6\mathrm{.}8$ percent and sells for $107\mathrm{.}5$ percent of par. The first

issue matures in $7$ years, the second in $28$ years.

The company's stock has a beta of $1\mathrm{.}3.$ The risk$-$free rate is $2\mathrm{.}4$ percent, and the market

risk premium is $6\mathrm{.}3$ percent. Assume that the overall cost of debt is the weighted

average implied by the two outstanding debt issues. Both bonds make semiannual

payments. The tax rate is $22$ percent. What is the company's WACC? $($Do not round

intermediate calculations and enter your answer as a percent rounded to $2$ decimal

places, e$.$g$.,32\mathrm{.}16.)$

WACC

$9\mathrm{.}96$

$\%$