The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 14%, 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 14 Its Before Tax Cost Of De 1 (62.18 KiB) Viewed 77 times

The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 14%, its before-tax cost of debt is 10%, and its marginal tax rate is 40%. 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 $1,096. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Х Open spreadsheet Calculate Paulson's WACC using market value weights. Round your answer to two decimal places. Do not round your intermediate calculations. Assets Liabilities And Equity Cash $ 120 Accounts payable and accruals $ 10 Accounts receivable 240 Short-term debt 46 Inventories 360 Long-term debt $1,050 Plant and equipment, net 2,160 Common equity 1,774 Total assets $2,880 Total liabilities and equity $2,880 %