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Suppose Microsoft has no debt and a WACC of 9 . 4 % . The average debt - to - value ratio for the software

Suppose Microsoft has no debt and a WACC of 9.4%. The average debt-to-value ratio for the software industry is 8.3%. 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 6.1%?

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