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Company cost of capital (S9.2) You are given the following information for a company: Long-term debt outstanding: 300,000 Current Yield to maturity (r debt )

Company cost of capital (S9.2) You are given the following information for a company:

Long-term debt outstanding: 300,000
Current Yield to maturity (rdebt) 8%
# of shares of common stock 10,000
Price per share $50
Book value per share $25
expected rate of return on stock (requity) 15%

Calculate the Companys cost of capital.

Note: show calculation for answer

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