Johnny Cake Ltd. has 8 million shares of stock outstanding selling at $18 per share...
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Finance
Johnny Cake Ltd. has 8 million shares of stock outstanding selling at $18 per share and an issue of $40miltion in 8 percent annual coupon bonds with a maturity of 17 years, selling at 92.0 percent of par. Assume Johnny Cake's weighted-average tax rate is 21 percent, its next dividend is expected to be $3 per share, and all future dividends are expected to grow at 4 percent per year, indefinitely. What is its WACC? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
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