3. Problem 10.09 (WACC) The Pavison Company's year-end balance sheet is shom 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 frm's long-term debt sells at par value. The frem's total debt, which is the sum of the companys short-term debt and long-term debt, equats $1,122. The firm has 576 shares of common stock outstanding that sell for $4.00 per share