1. Calculate the WACC. Johnny Cake Ltd. has 8 million shares of stock outstanding selling at \\( \\$ 22 \\) per share and an issue of \\( \\$ 40 \\) million in 10 percent annual coupon bonds with a maturity of 17 years, selling at 94.0 percent of par. Assume Johnny Cake's 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 5 percent per year, indefinitely. What is its WACC? (Do not round intermediate calculations and round your final answer to 2 decimal places.) \\begin{tabular}{|l|l|} \\hline 18 & Complete the following analysis. Do not hard code values in your calculations. \\\\ \\hline 19 & Before-tax cost of equity \\\\ \\hline 20 & Before-tax cost of debt \\\\ \\hline 21 & Equity weight \\\\ \\hline 23 & Debt weight \\\\ \\hline 24 & WACC \\\\ \\hline 25 & \\\\ \\hline 26 & \\\\ \\hline 2 & \\\\ \\hline \\end{tabular}
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