Excel Online Structured Activity: WACC The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 16%, 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 $1,168. 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. X Open spreadsheet Calculate Paulson's WACC using market-value weights. Round your answer to two decimal places. Do not round your intermediate calculations. Cash Assets Accounts receivable Inventories $120 240 360 Plant and equipment, net 2,160 Total assets $2,880 Liabilities And Equity Accounts payable and accruals Short-term debt Long-term debt Common equity Total liabilities and equity $10 48 $1,120 1,702 $2,880 123456789 Cost of common equity (rs) Before-tax cost of debt (ra) 5 Marginal tax rate (T) Common shares outstanding Current stock price 8 Long-term debt sells at par value 9 10 Balance Sheet: 11 Assets 12 Cash 13 Account receivable 14 Inventories 15 Plant and equipment, net Total assets 16 722222222852 WACC 17 18. 19 Market value of total debt 20 21 23 24 A 29 30 26 After-tax cost of debt 31 Market value of common equity Total capital 28 Weighted Average Cost of Capital (WACC) Percentage of debt Percentage of common equity B 16.00% 10.00% 40.00% 576 $4.00 Yes $120.00 $240.00 $360.00 $2,160.00 $2,880.00 C D Liabilities and Equity Accounts payable and accruals Short-term debt Long-term debt Common equity Total liabilities and equity Formulas #N/A #N/A #N/A #N/A #N/A #N/A #N/A E $10.00 $48.00 $1,120.00 $1,702.00 $2,880.00