Johnny Cake Ltd. has 8 million share of stock outstanding selling at $22 per share and an issue of $40 million in 10 percent annual coupon bonds with an maturity of 17 years selling at 94.0 percent of per. 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 round 2 decimal places.)
Before-tax cost of equity
Before-tax cost of debt
Equity weight
Debt weight
WACC