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 1 million

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 government bonds 6%

SKYE's equity beta 0.75

Historical excess return on stocks 6.3%

Tax rate 40%

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