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Paul Sharp is CFO of Home Depot. He is trying to determine the cost of equity financing for his company. The stock has a beta

Paul Sharp is CFO of Home Depot. He is trying to determine the cost of equity financing for his company. The stock has a beta of 0.7. Paul has estimated that the market return is 9.75%. The current rate for 10-year Treasury bonds is 2.49%. Calculate the cost of common equity financing using the CAPM-SML formula.

Round the answer to two decimal places in percentage form.

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