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Suppose PayPal (PYPL) has no debt and an equity cost of capital of 9.5%. The average debt-to-value ratio for the credit services industry is 14.6%.

Suppose PayPal (PYPL) has no debt and an equity cost of capital of 9.5%. The average debt-to-value ratio for the credit services industry is 14.6%. 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 6.3%

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