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Please help, will thumbs up the correct answer. Thank you so much! Johnny Cake Ltd. has 10 million shares of stock outstanding selling at $20
Please help, will thumbs up the correct answer. Thank you so much!
Johnny Cake Ltd. has 10 million shares of stock outstanding selling at $20 per share and an issue of $50 million in 8 percent, annual coupon bonds with a maturity of 13 years, selling at 93.5 percent of par ($1,000). If Johnny Cake's weighted average tax rate is 34 percent, its next dividend is expected to be $2.00 per share, and all future dividends are expected to grow at 5 percent per year, indefinitely, what is its WACC? (The answer format is already in percentage. For example, enter 3.50 for 3.50%. Round your answers to 2 decimal places)Step by Step Solution
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