Question
Suppose Microsoft has no debt and a WACC of 10.55%. The average debt-to-value ratiof or the software industry is 1.51%. What would be its cost
Suppose Microsoft has no debt and a WACC of 10.55%. The average debt-to-value ratiof or the software industry is 1.51%. 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 6.5%?
NOTE: Submit your answers with 4 decimals after the dot.
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Finance Basics 20 Minute Manager
Authors: Harvard Business Review
1st Edition
1625270852, 978-1625270856
