Question
The following table presents information for Golden Fleece Financial. Long-term debt outstanding $ 360,000 Current yield to maturity on debt 8.00 % Number of shares
The following table presents information for Golden Fleece Financial.
| Long-term debt outstanding | $ | 360,000 | |
| Current yield to maturity on debt | 8.00 | % | |
| Number of shares of common stock | 13,000 | ||
| Price per share | $ | 56 | |
| Book value per share | $ | 31 | |
| Expected rate of return on stock | 15.00 | % | |
Calculate the company cost of capital. (Ignore taxes. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
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The Palgrave Handbook Of Technological Finance
Authors: Raghavendra Rau, Robert Wardrop, Luigi Zingales
1st Edition
3030651169, 978-3030651169
