Question
Suppose Visa Inc. (V) has no debt and an equity cost of capital of 9 %. The average debt-to-value ratio for the credit services industry
Suppose Visa Inc. (V) has no debt and an equity cost of capital of 9 %. The average debt-to-value ratio for the credit services 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 6.1 %?
The cost of equity is %. (Round to two decimal places.)
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Personal Finance A Practical Approach
Authors: Jane King, Mary Carey
1st Edition
0199668833, 9780199668830
