q19

The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 17%, its before-tax cost of debt is 12%, and its marginal tax rate is 25%. Assume that the fim's long-term debt selis at par value. The firm's total debt, which is the sum of the company's short-term debt and iong. term debt, equals $1,170. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. Calculate Paulson's WACC using market-value weignts. Loo run runern Round your answer to two decimal plsces