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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 $ 23
What is the weighted-average cost of capital for SKYE Corporation given the following information?
| Equity shares outstanding | 1 | million |
|---|---|---|
| Stock price per share | $ 23 | |
| 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 | 5.8% | |
| Tax rate | 40% |
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Quality Auditing Journal Notes Checklists Observations Evidence Questions Log
Authors: Leon Edward
1st Edition
1729431569, 978-1729431566
