Question
Suppose Microsoft has no debt and a WACC of 9.3%. The average debt-to-value ratio for the software industry is 10.7%. What would be its cost
Suppose Microsoft has no debt and a WACC of 9.3%. The average debt-to-value ratio for the software industry is 10.7%. 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 6.5%?
The cost of equity is %.
Round to two decimal places
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Finance And Economics Discussion Series Overnight Interbank Loan Markets
Authors: United States Federal Reserve Board, Selva Demiralp
1st Edition
1288712618, 9781288712618
