Johnny cake ltd has 12 million shares of stock outstanding, Ask an Expert

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Johnny Cake Ltd. has 12 million shares of stock outstanding selling at $21 per share and an issue of $60 million in 8 percent annual coupon bonds with a maturity of 17 years, selling at 94.5 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 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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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92092341

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