What is the weighted-average cost of capital for SKYE Corporation given the following information?
Equity shares outstanding 1 million
Stock price per share $ 29
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 7%
SKYE’s equity beta 0.75
Historical excess return on stocks 6.4%
Tax rate 30%
What is the weighted-average cost of capital for SKYE Corporation given the following information?