Question
The following table presents information for Golden Fleece Financial. Long-term debt outstanding $ 500,000 Current yield to maturity on debt 9.00% Number of shares of
The following table presents information for Golden Fleece Financial.
Long-term debt outstanding $ 500,000
Current yield to maturity on debt 9.00%
Number of shares of common stock 20,000
Price per share $ 70
Book value per share $ 45
Expected rate of return on stock 18.00%
Calculate the company cost of capital. Note: Ignore taxes. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
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Analysis For Financial Management
Authors: Robert Higgins, Jennifer Koski, Todd Mitton
13th Edition
1260772365, 978-1260772364
