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Problem 10.09 (WACC) Check My Work (3 remaining eBook The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 15%,
Problem 10.09 (WACC) Check My Work (3 remaining eBook 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 9%, and its marginal tax rate is 25% 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 $1,124. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. Assets Liabilities And Equity Cash $ 120 Accounts payable and accruals $ 10 Accounts receivable 240 Short-term debt 54 Inventories 360 Long-term debt 1,070 Plant and equipment, net 2,160 Common equity 1,746 Total assets $2,880 Total liabilities and equity $2.880 Calculate Paulson's WACC using market value weights. Do not round intermediate calculations. Round your answer to two decimal places Check My Work (3 remaining)
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