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What would it cost of equity be

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Question - 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%. What would it cost of equity be if it took on the average amount of debt for its industry at a cost of debt of 6%?

A. 3.20%

B. 9.62%

C. 9.68%

D. 3.98%

Reference no: EM133189732

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