Question
What is the weighted average cost of capital for SKYE Corporation given the following information? Equity Shares Outstanding....... 1million Stock price per share....... $30.00 yield
What is the weighted average cost of capital for SKYE Corporation given the following information?
Equity Shares Outstanding....... 1million
Stock price per share....... $30.00
yield to maturity on debt...... 7.68%
book value of interest bearing debt....... $10 million
Coupon interest rate on debt....... 9%
interest rate on govenrment bonds..... 6%
SKYE's equity beta...... 0.75
Historical Excess return on stocks...... 6.3%
Tax rate...... 40%
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Automated Stock Trading Systems
Authors: Laurens Bensdorp
1st Edition
1544506031, 978-1544506036
