TDS Company has 10 million shares of common stock outstanding. The current share price

is $60, and the book value per share is $6. It also has two bonds outstanding. The first

bond issue has a face value of $70 million, has a 7 percent, and sell for 93 percent of par.

The second issue has a face value of $50 million, has an 8 percent coupon, and sells for

103 percent of par. The first issue matures in 21 years, the second one in 6 years. The

most recent dividend paid was $4 and the dividend growth rate is 6%. The first bond has a

YTM of 7.8%, the second bond has a YTM of 7.1%. The tax rate is 35%. What is the

company's WACC?