Calculate golden fleece''s company cost of capital

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Reference no: EM13305290

Following information for Golden Fleece Financial:

Long-term debt outstanding: $ 450,000
Current yield to maturity (rdebt): 8 %
Number of shares of common stock: 17,500
Price per share: $ 50.5
Book value per share: $ 40
Expected rate of return on stock (requity): 15 %

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

Reference no: EM13305290

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