Weighted average cost of capital for skye corporation

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Reference no: EM131587360

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%

Reference no: EM131587360

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