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pital P14-13 Calculating the WACC [LO3] Fller Manufacturing has 9.1 million shares of common stock outstanding. The current share price is $49, and the book

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pital P14-13 Calculating the WACC [LO3] Fller Manufacturing has 9.1 million shares of common stock outstanding. The current share price is $49, and the book value per share is $4. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $78 million, has a 7 percent coupon, and sells for 95 percent of par. The second issue has a face value of $54.6 million, has a 7 percent coupon, and sells for 98.9 percent of par. The first issue matures in 10 years, the second in 7 years. The most recent dividend was $2.7 and the dividend growth rate is 5.8 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 32 percent Required: What is the company's WACC? (Do not round your intermediate calculations:) Required: What is the company's WACC? (Do not round your Intermediate calculations.) Multiple Choice 10.16% 10.69% 10.36% 9.65% 9.75%

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