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: 1.04
• Yield to maturity on debt with 10 years to maturity: 2.8%

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 companys return on assets?