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What would its cost of equity be

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Question - Suppose PayPal (PYPL) has no debt and an equity cost of capital of 8.8%. The average debt-to-value ratio for the credit services industry is 15.2%. What would it's cost of equity be if it took on the average amount of debt for its industry at a cost of debt of 5.9%?

Reference no: EM133154354

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