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

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Ebook The Paulson Company S Year End Balance Sheet Is Shown Below Its Cost Of Common Equity Is 18 Its Before Tax Cost 1 (49.2 KiB) Viewed 57 times

eBook 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 12%, 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 $1,206. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. Assets Liabilities And Equity Cash $ 120 Accounts payable and accruals $ 10 Accounts receivable 240 Short-term debt 56 Inventories 360 Long-term debt 1,150 Plant and equipment, net 2,160 Common equity 1,664 Total assets $2,880 Total liabilities and equity $2,880 Calculate Paulson's WACf using market value weights. Do not round intermediate calculations. Round your answer to two decimal places. % Check My Work Ofcon Key