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Module $9$ Homework

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Johnny Cake Ltd$.$ has $10$ million shares of stock outstanding selling at $$21$ per share and an issue of $$50$ million in $10$ percent annual coupon bonds with a maturity of $16$ years, selling at $91\mathrm{.}0$ percent of par. Assume Johnny Cake's weighted$-$average tax rate is $21$ percent, its next dividend is expected to be $$3$ per share, and all future dividends are expected to grow at $5$ percent per year,

$10$ points indefinitely.

What is its WACC? $($Do not round intermediate calculations. Round your final answer to $2$ decimal places.$)$

WACC

$\%$

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Hint

$$

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