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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 $ 35
What is the weighted-average cost of capital for SKYE Corporation given the following information?
| Equity shares outstanding | 1 | million |
|---|---|---|
| Stock price per share | $ 35 | |
| Yield to maturity on debt | 7.68% | |
| Book value of interest-bearing debt | $14 | million |
| Coupon interest rate on debt | 9% | |
| Interest rate on government bonds | 7% | |
| SKYEs equity beta | 0.75 | |
| Historical excess return on stocks | 7.0% | |
| Tax rate | 40% |
Note: Enter your answer to 1 decimal place.
| Weighted-Average Cost of Capital | % |
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Energy Audit And Management Concept Methodologies Procedures And Case Studies
Authors: L. Ashok Kumar, Gokul Ganesan
1st Edition
978-1032067797
