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What is the weighted-average cost of capital for SKYE Corporation given the following information? Equity Shares Outstanding 1 million 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 1 million
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 government bonds 6%
SKYE's equity beta 0.75
Historical excess return on stocks 6.3%
Tax rate 40%
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