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Suppose PayPal (PYPL) has no debt and an equity cost of capital of 9.7 %. The average debt-to-value ratio for the credit services industry is

Suppose PayPal (PYPL) has no debt and an equity cost of capital of 9.7 %. The average debt-to-value ratio for the credit services industry is 15.4 %. What would its cost of equity be if it took on the average amount of debt for its industry at a cost of debt of 6 %?

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