Question
Suppose Microsoft has no debt and a WACC of 9.5 %. The averagedebt-to-value ratio for the software industry is 7.1 %. What would be its
Suppose Microsoft has no debt and a WACC of 9.5 %. The averagedebt-to-value ratio for the software industry is 7.1 %. 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 %?
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Personal Financial Planning
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
14th edition
978-1305887725, 1305887727, 1305636619, 978-1305636613
