Question $32$

$2\mathrm{.}5pt$

A company has $4,748,264$ shares of common stock outstanding. The current share price is $$50\mathrm{.}69,$ and the book value per share is $$6\mathrm{.}38.$ This company also has two bond issues outstanding. The first bond issue has a face value of $$70,075,127,$ has a $0\mathrm{.}05$ coupon, matures in $10$ years and sells for $83$ percent of par. The second issue has a face value of $$64,941,889,$ has a $0\mathrm{.}06$ coupon, matures in $20$ years, and sells for $92$ percent of par.

The most recent dividend was $$1\mathrm{.}12$ and the dividend growth rate is $0\mathrm{.}04.$ 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 $0\mathrm{.}26.$

What is the company's WACC? Enter the answer with $4$ decimals $($e$.$g$.0\mathrm{.}2345)$