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Excel Online Structured Activity: WACC The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 15%, its before-tax cost of

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Excel Online Structured Activity: WACC The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 15%, its before-tax cost of debt is 12%, 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 longterm debt, equals $1,098. 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 answer to two decimal places. Do not round your intermediate calculations. WACC \begin{tabular}{l|r} \hline Cost of common equity (rs) & 15.00% \\ \hline Before-tax cost of debt (rd) & 12.00% \\ \hline Marginal tax rate (T) & 40.00% \\ \hline Common shares outstanding & 576 \\ \hline Current stock price & $4.00 \\ \hline Long-term debt sells at par value & Yes \end{tabular} Balance Sheet: \begin{tabular}{lr} Assets & \\ \hline Cash & $120.00 \\ \hline Account receivable & $240.00 \\ Inventories & $360.00 \\ \hline Plant and equipment, net & $2,160.00 \\ \hline Total assets & $2,880.00 \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline Liabivities and Equity & \\ \hline Accounts payable and accruals & $10.00 \\ \hline Short-term debt & $48.00 \\ \hline Long-term debt & $1,050.00 \\ \hline Common equity & $1,772.00 \\ \hline Total liabilities and equity & $2,880.00 \\ \hline \end{tabular} Market value of total debt Market value of common equity Total capital Formulas Percentage of debt Percentage of common equity After-tax cost of debt Weighted Average Cost of Capital (WACC)

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