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Johnny Cake Ltd . has 1 4 million shares of stock outstanding selling at $ 2 0 per share and an issue of $ 7
Johnny Cake Ltd has million shares of stock outstanding
selling at $ per share and an issue of $ million in percent
annual coupon bonds with a maturity of years, selling at
percent of par. Assume Johnny Cakes weightedaverage tax rate is
percent, its next dividend is expected to be $ per share, and
all future dividends are expected to grow at percent per year,
indefinitely. What is its WACC?
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