5. DBC is estimating its WACC. The company has collected the following information: •Its capital structure consists of 40 percent debt and 60 percent common equity. •The company has 20-year bonds...

5. DBC  is estimating its WACC.  The company has collected the following information:   •Its capital structure consists of 40 percent debt and 60 percent common equity. •The company has 20-year bonds outstanding with a 9 percent annual coupon that are trading at par. •The company’s tax rate is 40 percent. •The risk-free rate is 5.5 percent. •The market risk premium is 5 percent. •The stock’s beta is 1.4. What is the company’s WACC?