Johnny Cake Ltd. has 10 million shares of stock outstanding selling at $23 per share and an issue of $50 million in 9 percent, annual coupon bonds with a maturity of 17 years, selling at 93.5 percent of par. If Johnny Cakes weighted average tax rate is 34 percent, its next dividend is expected to be $3.00 per share, and all future dividends are expected to grow at 6 percent per year, indefinitely, what is its WACC?

1.Solve for rate on Bond

2.Solve for cost of the stock

3.Solve for WACC

Please explain each step