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Suppose Visa Inc. (V) has no debt and an equity cost of capital of 9.2%. The average debt-to-value ratio for the credit services industry is
Suppose Visa Inc. (V) has no debt and an equity cost of capital of 9.2%. The average debt-to-value ratio for the credit services industry is 13.3%. 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%? The cost of equity is 7.14%. (Round to two decimal places.)
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