Question
The following table presents information for Golden Fleece Financial. Long-term debt outstanding $ 490,000 Current yield to maturity on debt 8.50% Number of shares of
The following table presents information for Golden Fleece Financial.
| Long-term debt outstanding | $ 490,000 |
|---|---|
| Current yield to maturity on debt | 8.50% |
| Number of shares of common stock | 19,500 |
| Price per share | $ 69 |
| Book value per share | $ 44 |
| Expected rate of return on stock | 16.00% |
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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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart
14th Edition
1264101597, 9781264101597
