The Paulson Company's year$-$end balance sheet is shown below. Its cost of common equity is $16\%,$ its before$-$tax cost of debt is $9\%,$ 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 long$-$term debt, equals $$1,128.$ The firm has $576$ shares of common stock outstanding that sell for $$4\mathrm{.}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

WACC

Cost of common equity $($rs$)16\mathrm{.}00\%$

Before$-$tax cost of debt $($rd$)9\mathrm{.}00\%$

Marginal tax rate $($T$)40\mathrm{.}00\%$

Common shares outstanding $576$

Current stock price $$4\mathrm{.}00$

Long$-$term debt sells at par value Yes

Balance Sheet:

Assets Liabilities and Equity

Cash $$120\mathrm{.}00$ Accounts payable and accruals $$10\mathrm{.}00$

Account receivable $$240\mathrm{.}00$ Short$-$term debt $$48\mathrm{.}00$

Inventories $$360\mathrm{.}00$ Long$-$term debt $$1,080\mathrm{.}00$

Plant and equipment, net $$2,160\mathrm{.}00$ Common equity $$1,742\mathrm{.}00$

Total assets $$2,880\mathrm{.}00$ Total liabilities and equity $$2,880\mathrm{.}00$

Formulas

Market value of total debt #N$/$A

Market value of common equity #N$/$A

Total capital #N$/$A

Percentage of debt #N$/$A

Percentage of common equity #N$/$A

After$-$tax cost of debt #N$/$A

Weighted Average Cost of Capital $($WACC$)$ #N$/$A

Calculate Paulson's WACC using market$-$value weights. Round your answer to two decimal places. Do not round your intermediate calculations.

Assets Liabilities And Equity

Cash $ $120$ Accounts payable and accruals $ $10$

Accounts receivable $240$ Short$-$term debt $48$

Inventories $360$ Long$-$term debt $$1,080$

Plant and equipment, net $2,160$ Common equity $1,742$

Total assets $$2,880$ Total liabilities and equity $$2,880$

fill in the blank $2$

$\%$