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1. Suppose Microsoft has no debt and a WACC of 9.1%. The average debt-to-value ratio for the software industry is 11.1%. What would be its

1. Suppose Microsoft has no debt and a WACC of 9.1%. The average debt-to-value ratio for the software industry is 11.1%. What would be its cost of equity if it took on the average amount of debt for its industry at a cost of debt of 6.3%?

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