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The following table presents information for Golden Fleece Financial. Long-term debt outstanding $ 340,000 Current yield to maturity on debt 8.50 % Number of shares
The following table presents information for Golden Fleece Financial.
| Long-term debt outstanding | $ | 340,000 | |
| Current yield to maturity on debt | 8.50 | % | |
| Number of shares of common stock | 12,000 | ||
| Price per share | $ | 54 | |
| Book value per share | $ | 29 | |
| Expected rate of return on stock | 16.00 | % | |
Calculate the company cost of capital.
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