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Suppose PayPal (PYPL) has no debt and an equity cost of capital of 8.7%. The average debt-to-value ratio for the credit services industry is 14.9%.

Suppose PayPal (PYPL) has no debt and an equity cost of capital of 8.7%. The average debt-to-value ratio for the credit services industry is 14.9%. 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%? The cost of equity is %. (Round to two decimal places.)

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