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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 7.3%. What would be its cost
Suppose Microsoft has no debt and a WACC of
9.4%.
The average debt-to-value ratio for the software industry is
7.3%.
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
6.2%?
The cost of equity is
nothing%.
(Round to two decimal places.)
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