ABC Companys cost of equity is 18%, its before-tax cost of debt is 8%, and its corporate tax rate is 40%. Given the following balance sheet, calculate the after-tax weighted-average cost of capital. Assets Liabilities Cash P 100

Accounts payable P 200 Accounts Receivable 400

Accrued taxes due 200 Inventories 200 Long-term debt 400 Plant and equipment 1,300

Equity 1,200 P2,000 P2,000