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Suppose Microsoft has no debt and a WACC of 9.4 %. The average debt-to-value ratio for the software industry is 5.5 %. What would be
Suppose Microsoft has no debt and a WACC of 9.4 %. The average debt-to-value ratio for the software industry is 5.5 %. 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 5.8 %?
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