Balance Sheet General Talc Mines December 31, 2003 Assets Current Assets Cash Accounts Receivable Inventories Total Current Assets Net Fixed Assets Total Assets $25,000 120,000 300,000 $445,000 $500,000 $945,000 Liabilities and Stockholders' Equity Current Liabilities Accounts Payable $80,000 Notes Payable 350,000 Accruals 50,000 Total Current Liabilities $480,000 Long-Term Debts(150 bonds issued at $1,000 par) 150,000 Total Liabilities $630,000 Stockholders' Equity Common Stock (7,200 shares outstanding) $180,000 Retained Eamings 135,000 Total Stockholders' Equity $315,000 Total Liabilities and Stockholders' Equity $945,000 General Talc Mines has compiled the following data regarding the market value and cost of the specific sources of capital. 8% 19 Source of Capital After-Tax Cost Long-term debt Common stock equity Market price per share of common stock $50 Market value of long-term debt $980 per bond The weighted average cost of capital using market value weights is RE as a source of capital in this question.) O 13.5 percent _.(See Table 9.3 Since RE does not have market value, ignore O 17.5 percent. 11.7 percent. O 15.8 percent