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The Harden Companys cost of common equity is 14 percent, its before-tax cost of debt is 11 percent, and its marginal tax rate is 25

The Harden Companys cost of common equity is 14 percent, its before-tax cost of debt is 11 percent, and its marginal tax rate is 25 percent. The stock sells at book value. Using the following balance sheet, calculate Hardens WACC.

Assets

Liabilities and Equity

Cash

$ 230

Accounts receivable

210

Inventories

580

Long-term debt

$1,059

Net plant and equipment

2,190

Common equity

2,151

Total assets

$3,210

Total liabilities and equity

$3,210

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