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 12%, and its marginal tax rate is 40%. 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 $1,108. The firm has 576 shares of common stock outstanding that sell for $4.00 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.

B19 1 WACC 5 Cost of common equity) Before-tax cost of debt (r.) Marginal tax rate (T) Common shares outstanding Current stock price Long-term debt sells at par value 16.00% 12.00% 40.00% 576 $4.00 8 Yes 12 10 Balance Sheet: 11 Assets Cash 13 Account receivable 14 Inventories 15 Plant and equipment, net 16 Total assets 17 $120.00 $240.00 $360.00 $2,160.00 $2,880.00 Liabilities and Equity Accounts payable and accruals Short-term debt Long-term debt Common equity Total liabilities and equity $10.00 $48.00 $1,060.00 $1,762.00 $2,880.00 19 Market value of total debt 20 Market value of common equity 21 Total capital Formulas #N/A #N/A #N/A 23 Percentage of debt Percentage of common equity #N/A #N/A 26 After-tax cost of debt #N/A 28 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 $1,060 Plant and equipment, net 2,160 Common equity 1,762 Total assets $2,880 Total liabilities and equity $2,880 3%