Question
Following information for Golden Fleece Financial: Long-term debt outstanding: $ 500,000 Current yield to maturity ( r debt ): 8 % Number of shares of
Following information for Golden Fleece Financial:
| Long-term debt outstanding: | $ | 500,000 |
|
| Current yield to maturity (rdebt): |
| 8 | % |
| Number of shares of common stock: |
| 20,000 |
|
| Price per share: | $ | 51 |
|
| Book value per share: | $ | 45 |
|
| Expected rate of return on stock (requity): |
| 15 | % |
a. Calculate Golden Fleece's company cost of capital. Ignore taxes.
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Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
