Calculate golden fleeces company cost of capital ignore

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Reference no: EM13568087

Following information for Golden Fleece Financial:

Long-term debt outstanding:

$

500,000


Current yield to maturity (rdebt):


8

%

Number of shares of common stock:


20,000


Price per share:

$

51


Book value per share:

$

45


Expected rate of return on stock (requity):


15

%

a. Calculate Golden Fleece's company cost of capital. Ignore taxes.

Reference no: EM13568087

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