What is the weighted average cost of capital for SKYE Corporation given the following information? Equity shares outstanding 1 million Stock price per share $ 23 Yield to maturity on debt 7.68% Book value of interest - bearing debt $14 million Coupon interest rate on debt 9% Interest rate on government bonds 7% SKYE's equity beta 0.75 Historical excess return on stocks 5.8% Tax rate 40% Note: Enter your answer to 1 decimal place.
What is the weighted average cost of capital for SKYE Corporation given the following information? Equity shares outstanding 1 million Stock price per share $ 23 Yield to maturity on debt 7.68% Book value of interest - bearing debt $14 million Coupon interest rate on debt 9% Interest rate on government bonds 7% SKYE's equity beta 0.75 Historical excess return on stocks 5.8% Tax rate 40% Note: Enter your answer to 1 decimal place.
Chapter7: Types And Costs Of Financial Capital
Section: Chapter Questions
Problem 11EP
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