What is the weighted-average cost of capital for SKYE Corporation given the following information? Equity shares outstanding Stock price per share Yield to maturity on debt Book value of interest-bearing debt Coupon interest rate on debt Interest rate on government bonds SKYE's equity beta Historical excess return on stocks Tax rate Note: Enter your answer to 1 decimal place. 1 million $ 23 7.68% $14 million 9% 7% 0.75 5.8% 40%

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Chapter14: Security Structures And Determining Enterprise Values
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What is the weighted-average cost of capital for SKYE Corporation given the following information?
Equity shares outstanding
Stock price per share
Yield to maturity on debt
Book value of interest-bearing debt
Coupon interest rate on debt
Interest rate on government bonds
SKYE's equity beta
Historical excess return on stocks
Tax rate
Note: Enter your answer to 1 decimal place.
X Answer is complete but not entirely correct.
Weighted-average cost of capital
11.6 × %
1 million
$ 23
7.68%
$14 million
9%
7%
0.75
5.8%
40%
Transcribed Image Text:What is the weighted-average cost of capital for SKYE Corporation given the following information? Equity shares outstanding Stock price per share Yield to maturity on debt Book value of interest-bearing debt Coupon interest rate on debt Interest rate on government bonds SKYE's equity beta Historical excess return on stocks Tax rate Note: Enter your answer to 1 decimal place. X Answer is complete but not entirely correct. Weighted-average cost of capital 11.6 × % 1 million $ 23 7.68% $14 million 9% 7% 0.75 5.8% 40%
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