The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 18%, 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 firms total debt, which is the sum of the companys short-term debt and long-term debt, equals $1,154. The firm has 576 shares of common stock outstanding that sell for $4.00 per share.

Assets Liabilities And EquityCash$ 120 Accounts payable and accruals$ 10Accounts receivable240 Short-term debt44Inventories360 Long-term debt1,110Plant and equipment, net2,160 Common equity1,716Total 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.

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