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Suppose The Washington Post Company(WPO) has no debt and an equity cost of capital of 9.2 %9.2%. The averagedebt-to-value ratio for the software industry is

Suppose The Washington Post Company(WPO) has no debt and an equity cost of capital of 9.2 %9.2%.

The averagedebt-to-value ratio for the software industry is 13.0 %13.0%.

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 6.0 %6.0%?

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