Question

You are given the following information for Golden Fleece Financial: Long-term debt outstanding: $440,000 Current yield...

You are given the following information for Golden Fleece Financial:

Long-term debt outstanding: $440,000
Current yield to maturity (rdebt): 6%
Number of shares of common stock: 17,000
Price per share: $50.40
Book value per share: $28
Expected rate of return on stock (requity): 13%

Calculate Golden Fleece's company cost of capital. Ignore taxes. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Cost of capital

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