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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
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 firm's weighted average cost of capital (WACC)? 11.2% 9.1% 7.39% 7.6% Question 11 0.5 pts Which of the choices will make the following sentence a true statement? A stock with an actual return that lies below the security market line has more systematic risk than the overall stock market less systematic risk than the overall stock market a return equivalent to the level of risk assumed a return too low for the level of the risk it takes
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