Johnny Cake Ltd. has 8 million shares of stock outstanding selling at $22 per share an an issue for $40 million in 10 percent annual coupon bonds with a maturity of 17 years, selling at 94 percent of par. Assume Johnny Cake’s 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 5 percent per year. indefinitely. What is its WACC?

i think it's eleven too, don't woosh me here, but according to the "experts" it's 2.

the proof starts from the peano postulates, which define the natural

numbers n. n is the smallest set satisfying these postulates:

  p1.   1 is in n.

  p2.   if x is in n, then its "successor" x' is in n.

  p3.   there is no x such that x' = 1.

  p4.   if x isn't 1, then there is a y in n such that y' = x.

  p5.   if s is a subset of n, 1 is in s, and the implication

      (x in s => x' in s) holds, then s = n.

then you have to define addition recursively:

  def: let a and b be in n. if b = 1, then define a + b = a'

      (using p1 and p2). if b isn't 1, then let c' = b, with c in n

      (using p4), and define a + b = (a + c)'.

then you have to define 2:

  def:   2 = 1'

2 is in n by p1, p2, and the definition of 2.

theorem:   1 + 1 = 2

proof: use the first part of the definition of + with a = b = 1.

      then 1 + 1 = 1' = 2   q.e.d.

note: there is an alternate formulation of the peano postulates which

replaces 1 with 0 in p1, p3, p4, and p5. then you have to change the

definition of addition to this:

  def: let a and b be in n. if b = 0, then define a + b = a.

      if b isn't 0, then let c' = b, with c in n, and define

      a + b = (a + c)'.

you also have to define 1 = 0', and 2 = 1'. then the proof of the

theorem above is a little different:

proof: use the second part of the definition of + first:

      1 + 1 = (1 + 0)'

      now use the first part of the definition of + on the sum in

      parentheses:   1 + 1 = (1)' = 1' = 2   q.e.d.

my dear correct answer is option number 3

the option best identifies the textual evidence that supports this conclusion is c.) when an argument is over, how many weighty reasons does a man recollect which his heat and violence made him utterly forget? in order to recognize textual evidence is to identify the topic sentence where the author states the main idea. textual evidence is what supports the topic sentence or main idea of a passage.