Question
The following table presents information for Golden Fleece Financial. Long-term debt outstanding $ 380,000 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 | $ 380,000 |
|---|---|
| Current yield to maturity on debt | 9.00% |
| Number of shares of common stock | 14,000 |
| Price per share | $ 58 |
| Book value per share | $ 33 |
| 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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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
ISBN: 978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
