What is the weighted average cost of capital for skye


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%

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What is the weighted average cost of capital for skye
Reference No:- TGS02382903

Expected delivery within 24 Hours