RSES

The Paulson Company's year$-$end balance sheet is shown below. Its cost of common equity is 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 $$1,172.$ The firm has $576$ shares of common stock outstanding that sell for $$4\mathrm{.}00$ per share.

$\backslash$table$[[$Assets$,$Liabilities And Equity$],[$Cash$,$$$120,$Accounts payable and accruals,$$10$

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 $8\%,$ 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 longterm debt, equals $$1,172.$ The firm has $576$ shares of common stock outstanding that sell for $$4\mathrm{.}00$ per share.

$\backslash$table$[[$Assets$,$Liabilities And Equity$],[$Cash$,$$$120,$Accounts payable and accruals,$$10$