5. Problem 10.09 Click here to read the eBook: An Overview of the Weighted Average Cost of Capital (WACC) Click here to read the eBook: Basic Definitions 1 Problem Walk-Through Problem 10-9 WACC The Patrick 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 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 $1,198. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. Calculate Patrick's WACC using market value weights. Round your answer to two decimal places. Assets Liabilities And Equity Cash $ 120 $ 10 Accounts payable and accruals Accounts receivable 240 Short-term debt 48 Inventories 360 Long-term debt $1,150 Plant and equipment, net 2,160 Common equity 1,672 Total assets $2,880 $2,880 Total liabilities and equity