Final answer:
To calculate Dani Corporation's WACC, both the cost of equity and cost of debt must be considered, taking into account dividends, growth rates, bond prices, interest rates, and tax rates. Specific data, such as the risk-free rate and equity risk premium, are required for an accurate calculation. However, with the information provided, a precise numerical value for the WACC cannot be determined.
Step-by-step explanation:
To calculate the Weighted Average Cost of Capital (WACC) for Dani Corporation, we must consider the cost of equity and the cost of debt, taking into account the current share price, the book value per share, dividends, growth rate, and the specifics of the bond issues, while adjusting for the corporate tax rate.
The cost of equity can be estimated using the Dividend Discount Model (DDM), as the dividend and growth rate have been provided. However, additional information, such as the risk-free rate and the equity risk premium would be required to calculate the cost of equity more accurately using the Capital Asset Pricing Model (CAPM).
The cost of debt can be found by calculating the yield to maturity (YTM) of the bond issues based on their given market prices, coupon rates, face values, and time to maturity. The overall cost of debt is a weighted average of the debt issues, accounting for their respective market values.
Once we have the cost of equity and the weighted cost of debt, we would combine them, using the market value weights of debt and equity in the company's capital structure, to find the WACC. Remember to use the after-tax cost of debt, as interest expenses are tax-deductible.
However, without the entire set of necessary data, specifically the risk-free rate, equity risk premium, and the YTM for the bonds, we cannot provide an explicit numerical value for Dani Corporation's WACC.