14 Question 1 (of 3) value 33.33 points Problem 14-13 Calculating the WACC LO3] Dinklage Corp. has 4 million shares of common stock outstanding. The current share price is $83, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $90 million, a coupon rate of 6 percent, and sells for 98 percent of par. The second issue has a face value of $60 million, a coupon rate of 7 percent, and sells for 106 percent of par. The first issue matures in 21 years, the second in 3 years. Suppose the most recent dividend was $5.50 and the dividend growth rate is 5 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 35 percent. What is the company's WACC? (Do not round calculations. Enter your answer as a percent rounded to 2 decimal places, e.g, 32.16.) WACC References eBook & Resources Worksheet Difficulty: Basic Section:14.4 The We Problem 14-13 Calculating the WACC ILO3] Learning Objective: 14-03 How to determine a firms overall cost of capital and how to use it to value a company MacBook P F1 F2 O F3 FS