Bonaime, Inc., has 7.9 million shares of common stock outstanding. The current share price is $62.90,...

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Bonaime, Inc., has 7.9 million shares of common stockoutstanding. The current share price is $62.90, and the book valueper share is $5.90. The company also has two bond issuesoutstanding. The first bond issue has a face value of $71.9million, a coupon rate of 7.4 percent, and sells for 88.5 percentof par. The second issue has a face value of $36.9 million, acoupon rate of 8.4 percent, and sells for 87.5 percent of par. Thefirst issue matures in 18 years, the second in 10 years. The mostrecent dividend was $3.80 and the dividend growth rate is 5percent. Assume that the overall cost of debt is the weightedaverage of that implied by the two outstanding debt issues. Bothbonds make semiannual payments. The tax rate is 40 percent.

What is the company’s WACC? (Do not round intermediatecalculations and enter your answer as a percent rounded to 2decimal places, e.g., 32.16.)

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Bonaime, Inc., has 7.9 million shares of common stockoutstanding. The current share price is $62.90, and the book valueper share is $5.90. The company also has two bond issuesoutstanding. The first bond issue has a face value of $71.9million, a coupon rate of 7.4 percent, and sells for 88.5 percentof par. The second issue has a face value of $36.9 million, acoupon rate of 8.4 percent, and sells for 87.5 percent of par. Thefirst issue matures in 18 years, the second in 10 years. The mostrecent dividend was $3.80 and the dividend growth rate is 5percent. Assume that the overall cost of debt is the weightedaverage of that implied by the two outstanding debt issues. Bothbonds make semiannual payments. The tax rate is 40 percent.What is the company’s WACC? (Do not round intermediatecalculations and enter your answer as a percent rounded to 2decimal places, e.g., 32.16.)