What is the weighted-average cost of capital of Super Excellent Company Ltd. Given the following information? Equity
Question:
What is the weighted-average cost of capital of Super Excellent Company Ltd. Given the following information?
Equity shares outstanding 15,500,000
Stock price per share 22 THB
Yield to maturity on the company’s bond 7.5%
The coupon rate on the company’s bond 5.5%
Book value of interest-bearing debt 160,000,000 THB
The interest rate on government bonds 4.5%
XYZ’s equity beta 1.5
Historical excess return on stocks 6.5%
Tax rate 35%
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen