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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 | 0.75 |
| Historical excess return on stocks | 6.3% |
| Tax rate | 40% |
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The New Finance Overreaction Complexity And Their Consequences
Authors: Robert A. Haugen
4th International Edition
0132775875, 9780132775878
