Johnny Cake Ltd. has 14 million shares of stock outstanding selling at $22 per share...
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Accounting
Johnny Cake Ltd. has 14 million shares of stock outstanding selling at $22 per share and an issue of $70 million in 9 percent annual coupon bonds with a maturity of 16 years, selling at 91.5 percent of par. Assume Johnny Cakes weighted-average tax rate is 34 percent, its next dividend is expected to be $3 per share, and all future dividends are expected to grow at 6 percent per year, indefinitely. What is its WACC?
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