Q5 (20 Marks) Greengrow Lawn Care (GLC) Inc. is an importer, manufacturer and distributor of natural (organic) lawn care products from around the world. The company is privately owned. Of the 500,000 shares outstanding, 450,000 are owned by the founder of the company, Ann Verka. The rest are owned by various employees. GLC'. has a perpetual debt with a par value of $2.5 million and coupon rate of 8 percent. However, interest rates have increased and now the debt has a 9 percent yield-tomaturity. Annual before-tax before-interest operating cash ows for the year just ended were $1.5 million. The corporate tax rate was 35 percent. You have recently been hired as the new CFO. Your assistant has provided you with some information: ratio or_. 'c lawn chemicals Integrated Manufacturing - its chemical division manufactures lawn 12.5 9.0% chemicals, accounting for 15% of Integrated's total sales. Other divisions include clothin- and steel manufacturin- . Assume that markets are perfect except for the existence of corporate taxes of 35%. Estimate the current WACC for GLC. Make clear any assumptions you make and explain why they are reasonable