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Suppose The Washington Post Company (WPO) has no debt and an equity cost of capital of 8.9%. The average debt-to-value ratio for the software industry

Suppose The Washington Post Company (WPO) has no debt and an equity cost of capital of 8.9%. The average debt-to-value ratio for the software industry is 13.4%. 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 5.8%?

The cost of equity is _%. (Round to two decimal places.)

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