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11. Assume the following information for Microsoft Corporation: If Microsoft were to double its debt, holding all else constant, what would its new cost of

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11. Assume the following information for Microsoft Corporation: If Microsoft were to double its debt, holding all else constant, what would its new cost of equity capital be? Assume a 6 percent market risk premium and 3 percent risk free rate. a. 10.24 percent. b. 3.80 percent. c. 11.36 percent. d. 9.67 percent. e. None of the above

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