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You have the following data on The Home Depot, Inc. Market value of long-term debt: $20,888 million Market value of common stock: $171,138 million Beta: 1.14 Yield to maturity on debt with 10 years to maturity: 2.24% You also have the following market data: Expected annual return on the market portfolio: 8% Annual risk-free rate: 1% Assume that if Home Depot issues new bonds, the bonds will have 10 years to maturity. What is the company’s return on assets?

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