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 $8\%,$ 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 long$-$term debt, equals $$1,185.$ The firm has $574$ shares of common stock outstanding that sell for $$5\mathrm{.}00$ per share.

Assets

Liabilities And Equity

Cash

$ $120$

Accounts payable and accruals

$ $10$

Accounts receivable

$240$

Short$-$term debt

$55$

Inventories

$360$

Long$-$term debt

$1,130$

Plant and equipment, net

$2,160$

Common equity

$1,685$

Total assets

$$2,880$

Total liabilities and equity

$$2,880$

Calculate Paulson's WACC using Book$-$value weights.

Do not round intermediate calculations. Round your answer to two decimal places.

WACC $=$ We $*$ Cost of equity $+$ Wd $*$ Cost of debt $*(1-$ tax rate$)$

where,

We $=$ Weight of equity

Wd $=$ Weight of debt