Dinklage corp. has 7 million shares of common stock outstanding. the current share price is $67, and the book value per share is $6. the company also has two bond issues outstanding. the first bond issue has a face value of $60 million, a coupon rate of 7 percent, and sells for 92 percent of par. the second issue has a face value of $45 million, a coupon rate of 6 percent, and sells for 104 percent of par. the first issue matures in 22 years, the second in 7 years. suppose the most recent dividend was $4.15 and the dividend growth rate is 4.2 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 23 percent. what is the company’s wacc?

An employer who is considering hiring eva has asked donna, eva’s former supervisor, for a report on eva. in truth, eva’s work for donna has been only average. however, eva is donna’s friend, and donna knows that eva probably will not get the job if she says anything negative about eva, and donna knows that eva desperately needs the job. further, donna knows that if the situation were reversed, she would not want eva to mention her deficiencies. nevertheless, it has been donna’s policy to reveal the deficiencies of employees when she has been asked for references by employers, and she knows that some of eva’s faults may be bothersome to this particular employer. finally, this employer has leveled with donna in the past when donna has asked for a report on people who have worked for him. should donna reveal deficiencies in eva’s past performance? (remember to use one of the three moral theories acceptable for this test to solve this dilemma. any discussion of any personal opinion, religious perspective, or theory other than the moral theories acceptable for this test will result in a score of "0" for this question.)