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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 14 million shares of stock outstanding
selling at $20 per share and an issue of $70 million in 9 percent
annual coupon bonds with a maturity of 17 years, selling at 93.0
percent of par. Assume Johnny Cakes 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 6 percent per year,
indefinitely. What is its WACC?

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