Problem $14-13$ Calculating the WACC $[$LO$3]$

Dani Corporation has $9$ million shares of common stock outstanding. The current share

price is $$81,$ and the book value per share is $$7.$ The company also has two bond issues

outstanding. The first bond issue has a face value of $$130$ million, a coupon rate of $6$

percent, and sells for $92$ percent of par. The second issue has a face value of $$115$

million, a coupon rate of $5$ percent, and sells for $103$ percent of par. The first issue

matures in $24$ years, the second in $10$ years.

Suppose the most recent dividend was $$4\mathrm{.}85$ and the dividend growth rate is $5\mathrm{.}2$

percent. Assume that the overall cost of debt is the weighted average of that implied by

the two outstanding debt issues. The tax rate is $22$ percent. What is the company's

WACC? $($Do not round intermediate calculations and enter your answer as a percent

rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

WACC