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4. You have the following capital structure and market information on YUM Companies. Equtiy information Common shares outstanding Market price per share Book value of
4. You have the following capital structure and market information on YUM Companies. Equtiy information Common shares outstanding Market price per share Book value of shareholders' equity $ Stock beta 50,000,000 $80 2,000,000,000 1.15 Debt information Book value of debt Market price of debt Coupon rate Maturity $1,000,000,000 110% of face 9%, semiannual 15 years In addition to the above information, the risk free interest rate is 5% and the market risk premium is 7%, and the company's marginal tax rate is 21%. a. (10 points) Based on the above information, estimate the company's weighted average cost of capital
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