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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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