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Home Depot has a debt-equity ratio of .86. The firm's WACC is 7.11 percent and its levered cost of equity is 10.54 percent. What is

Home Depot has a debt-equity ratio of .86. The firm's WACC is 7.11 percent and its levered cost of equity is 10.54 percent. What is the pretax cost of debt based on MM Proposition I with no taxes?

Group of answer choices 7.12% 6.05% 4.25% 3.95% 3.12%

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