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calculate the WACC Excel Online Structured Activity: WACC The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 14%, its
calculate the WACC
Excel Online Structured Activity: WACC The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 14%, its before-tax cost of debt is 10%, 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 $1,127. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Open spreadsheet Calculate Paulson's WACC using market value weights. Round your ansfer to two decimal places. Do not round your intermediate calculations Assets Cash $ 120 240 Accounts receivable Inventories Plant and equipment, net Liabilities And Equity Accounts payable and accruals $ 10 Short-term debt 47 Long-term debt $1,080 Common equity 1,743 Total liabilities and $2,880 equity 360 2,160 Total assets $2,880 Step by Step Solution
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