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Johnny Cake Limited has 1 4 million shares of stock outstanding selling at $ 1 8 per share and an issue of $ 7 0

Johnny Cake Limited has 14 million shares of stock outstanding selling at $18 per share and an issue of $70 million in 10 percent annual coupon bonds with a maturity of 16 years, selling at 94.0 percent of par. Assume Johnny Cakes weighted-average tax rate is 21 percent, it cannot make use of interest tax shields for the foreseeable future, 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?

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