The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 18%, its before-tax cost of de

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The Paulson Company S Year End Balance Sheet Is Shown Below Its Cost Of Common Equity Is 18 Its Before Tax Cost Of De 1 (17.22 KiB) Viewed 11 times

The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 18%, its before-tax cost of debt is 9%, and its marginal tax rate is 25%. Assume that the firm's long-term debt sells at par value. The firm's total debt, which is the sum of the company's short-term debt and long-term debt, equals $1,168. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. Assets Cash Accounts receivable Inventories Plant and equipment, net Total assets $ 120 240 360 2,160 $2,880 Calculate Paulson's WACC using market-value Liabilities And Equity Accounts payable and accruals $10 58 1,110 1,702 Short-term debt Long-term debt Common equity Total liabilities and equity $2,880 weights. Do not round intermediate calculations. Round your answer to two decimal places.