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 11 , and its marginal tax rate is 25 Assume that the firm's long term debt sells at par value The firms total debt, which is the sum of the companys short term debt and long term debt, equals $1,190 The firm has 576 shares of common stock outstanding that sell for $4 00 per share Assets Liabilities And Equity Cash $ 120 Accounts payable and accruals $ 10 Accounts receivable 240 Short term debt 60 Inventories 360 Long term debt 1,130 Plant and equipment, net 2,160 Common equity 1,680 Total assets $2,880 Total liabilities and equity $2,880 Calculate Paulson's WACC using market value weights Do not round intermediate calculations Round your answer to two decimal places part two Barton Industries expects next year's annual dividend, D 1 , to be $2 40 and it expects dividends to grow at a constant rate g 4 4 The firm's current common stock price, P 0 , is $25 00 If it needs to issue new common stock, the firm will encounter a 4 7 flotation cost, F What is the flotation cost adjustment that must be added to its cost of retained earnings Do not round intermediate calculations Round your answer to two decimal places What is the cost of new common equity considering the estimate made from the three estimation methodologies Do not round intermediate calculations Round your answer to two decimal places part three The Evanec Company's next expected dividend, D 1 , is $3 63 its growth rate is 4 and its common stock now sells for $38 00 New stock (external equity) can be sold to net $30 40 per share What is Evanec's cost of retained earnings, r s Do not round intermediate calculations Round your answer to two decimal places r s What is Evanec's percentage flotation cost, F Round your answer to two decimal places F What is Evanec's cost of new common stock, r e Do not round intermediate calculations Round your answer to two decimal places r e

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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 11%, and its

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 11%, and its marginal tax rate is 25%. Assume that the firm's long-term debt sells at par value. The firms total debt, which is the sum of the companys short-term debt and long-term debt, equals $1,190. The firm has 576 shares of common stock outstanding that sell for $4.00 per share.

Assets		Liabilities And Equity
Cash	$ 120	Accounts payable and accruals	$ 10
Accounts receivable	240	Short-term debt	60
Inventories	360	Long-term debt	1,130
Plant and equipment, net	2,160	Common equity	1,680
Total assets	$2,880	Total liabilities and equity	$2,880

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

part two

Barton Industries expects next year's annual dividend, D₁, to be $2.40 and it expects dividends to grow at a constant rate g = 4.4%. The firm's current common stock price, P₀, is $25.00. If it needs to issue new common stock, the firm will encounter a 4.7% flotation cost, F. What is the flotation cost adjustment that must be added to its cost of retained earnings? Do not round intermediate calculations. Round your answer to two decimal places.

What is the cost of new common equity considering the estimate made from the three estimation methodologies? Do not round intermediate calculations. Round your answer to two decimal places.

part three

The Evanec Company's next expected dividend, D₁, is $3.63; its growth rate is 4%; and its common stock now sells for $38.00. New stock (external equity) can be sold to net $30.40 per share.

What is Evanec's cost of retained earnings, r_s? Do not round intermediate calculations. Round your answer to two decimal places.

r_s = %
What is Evanec's percentage flotation cost, F? Round your answer to two decimal places.

F = %
What is Evanec's cost of new common stock, r_e? Do not round intermediate calculations. Round your answer to two decimal places.

r_e = %