What is the company return on assets

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Reference no: EM131980697

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: 1.13 Yield to maturity on debt with 10 years to maturity: 2.85% 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 company’s return on assets? Do not round at intermediate steps in your calculation. Express your answer in percent. Round to two decimal places. Do not type the % symbol.

Reference no: EM131980697

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