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Home Depot has a cost of equity of 14%, has a pre-tax cost of debt of 7%, and is financed 30% with equity and 70%

Home Depot has a cost of equity of 14%, has a pre-tax cost of debt of 7%, and is financed 30% with equity and 70% with debt. The marginal tax rate is 35%. What is the firms weighted average cost of capital (WACC)?

Group of answer choices

9.1%

11.2%

7.6%

7.39%

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