The Paulson company's year-end balance sheet is shown below. It's cost of common equity is 14%, it's before-tax cost of debt is 10%, and it's 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 and long-term debt, equals $1,167. The firm has 576 shares of common stock outstanding that sell for $4 per share. Calculate Paulson's WACC using market-value weights.

Assets Cash Accounts receivable 240 360 Inventories Plant and equipment, net 2,160 $2,880 Total assets Liabilities and Equity Accounts payable and accruals Short-term debt Long-term debt Common equity Total liabilities and equity 10 1,703 $2,880