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1. Suppose Microsoft has no debt and a WACC of 12.87%. The average debt-to-value ratiofor the software industry is 1.53%. What would be its cost

1. Suppose Microsoft has no debt and a WACC of 12.87%. The average debt-to-value ratiofor the software industry is 1.53%. What would be its cost of equity if it took on the aver-ageamount of debt for its industry at a cost of debt of 6.89%? Submit your answers with 4 decimals after the dot.

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