What would its cost of equity be if it took on the average

Reference no: EM133377603

Question: Suppose Microsoft has no debt and an equity cost of capital of 9.2%. The average debt-to-value ratio for the software industry is 13%. 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%?

Reference no: EM133377603

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