Question: ch 16 3) please answer Suppose Microsoft has no debt and a WACC of 9.7%. The average debt-to-value ratio for the software industry is 6.1%.

ch 16 3) please answer

Suppose Microsoft has no debt and a WACC of 9.7%. The average debt-to-value ratio for the software industry is 6.1%. What would be its cost of equity if it took on the average amount of debt for its industry at a cost of debt of 5.8% ? The cost of equity is \%. (Round to two decimal places.)

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