4. You have the following capital structure and market information on YUM Companies. Equtiy information Common shares ou

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4 You Have The Following Capital Structure And Market Information On Yum Companies Equtiy Information Common Shares Ou 1 (304.19 KiB) Viewed 26 times

4. You have the following capital structure and market information on YUM Companies. Equtiy information Common shares outstanding Market price per share Book value of shareholders' equity $ Stock beta 50,000,000 $80 2,000,000,000 1.15 Debt information Book value of debt Market price of debt Coupon rate Maturity $1,000,000,000 110% of face 9%, semiannual 15 years In addition to the above information, the risk free interest rate is 5% and the market risk premium is 7%, and the company's marginal tax rate is 21%. a. (10 points) Based on the above information, estimate the company's weighted average cost of capital.