Pininfarina Company recently hired you as a consultant to estimate the company’s WACC. You have obtained the following i

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Pininfarina Company recently hired you as a consultant to
estimate the company’s WACC. You have obtained the following
information. (1) The company has noncallable bonds with a $1,000
face value and coupon rate of 10% (paid semi-annually). The bonds
mature in 4 years and have a current price of $1,140. (2) The
company’s tax rate is 30%. (3) The current price of the company’s
stock is $80.00 per share. Dividends are expected to grow at 5%
indefinitely, and the most recent dividend paid by the company was
$2.75 per share. (4) The target capital structure of the company
consists of 41.5% debt, and the balance is common equity. (5) The
company is not planning to issue any new common stock. What is
Pininfarina Company’s WACC?