Johnny cake ltd has 10 million shares of stock outstanding


Johnny Cake Ltd. has 10 million shares of stock outstanding selling at $21 per share and an issue of $50 million in 10 percent annual coupon bonds with a maturity of 16 years, selling at 91.0 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. Round your final answer to 2 decimal places.)

WACC %

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Financial Management: Johnny cake ltd has 10 million shares of stock outstanding
Reference No:- TGS02757287

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