Question
The following table presents information for Golden Fleece Financial. Long-term debt outstanding $ 390,000 Current yield to maturity on debt 8.00 % Number of shares
The following table presents information for Golden Fleece Financial.
| Long-term debt outstanding | $ | 390,000 | |
| Current yield to maturity on debt | 8.00 | % | |
| Number of shares of common stock | 14,500 | ||
| Price per share | $ | 59 | |
| Book value per share | $ | 34 | |
| Expected rate of return on stock | 15.00 | % | |
Calculate the company cost of capital. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Cost of capital __ %
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The Essential Nonprofit Fundraising Handbook
Authors: Michael A. Sand, Linda Lysakowski
1st Edition
1601630727, 978-1601630728
