Filer Manufacturing has 9 million shares of common stock outstanding. The current share price is $81,...

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Filer Manufacturing has 9 million shares of common stockoutstanding. The current share price is $81, and the book value pershare is $8. Filer Manufacturing also has two bond issuesoutstanding. The first bond issue has a face value of $80 million,has a 10 percent coupon, and sells for 96 percent of par. Thesecond issue has a face value of $50 million, has a 11 percentcoupon, and sells for 104 percent of par. The first issue maturesin 25 years, the second in 8 years.

The most recent dividend was $5.3 and the dividend growth rateis 5 percent. 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 35 percent.

Required:
What is the company's WACC? (Do not round yourintermediate calculations.)

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Filer Manufacturing has 9 million shares of common stockoutstanding. The current share price is $81, and the book value pershare is $8. Filer Manufacturing also has two bond issuesoutstanding. The first bond issue has a face value of $80 million,has a 10 percent coupon, and sells for 96 percent of par. Thesecond issue has a face value of $50 million, has a 11 percentcoupon, and sells for 104 percent of par. The first issue maturesin 25 years, the second in 8 years. The most recent dividend was $5.3 and the dividend growth rateis 5 percent. 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 35 percent. Required:What is the company's WACC? (Do not round yourintermediate calculations.)