Flotation Costs

Equity
8.00%

Coupon Rate Flotation Costs Kd Face Value Flotation cost

Bond
6% 1.50% ? 100
Predators
Debt/Equity Wd We KeL KeU
0.8 0.4444444444 0.5555555556 17.55% 11.25%

Tax Rate Investment WACC

Other
30% 14,000,000 ?

Dividend Dividend Growth Stock Price D/E Tax rate Kd

Diggem Inc
1.65 6% 18.45 0.6 0.25 6.00%

Beta(L) Rf E(Rm) D/E Tax Rate Kd

Skyreach Inc.
1.7 2.00% 10.65% 0.9 0.2 8%

Weight K
Equity 0.55556 KeL 17.55%
Debt 0.44444 Kd 6.09%
WACC 11.64%
Coupon

KeL KeU Industry Average KeU

15.48% 10.68% 11.25%

KeL KeU Industry Average KeL

16.71% 11.82% 17.55%