Johnny cake ltd has 14 million shares of stock outstanding, Ask an Expert

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Johnny Cake Ltd. has 14 million shares of stock outstanding selling at $23 per share and an issue of $70 million in 10 percent annual coupon bonds with a maturity of 18 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 and round your final answer to 2 decimal places.) WACC %

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92331324

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