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 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 $1,154. The firm has 576 shares of common stock outstanding that sell for $4.00 per share.

Assets

Cash $ 120

Accounts receivable 240

Inventories 360

Plant and equipment, net 2,160

Total assets $2,880

Liabilities And Equity

Accounts payable and accruals $ 10

Short-term debt 54

Long-term debt 1,100

Common equity 1,716

Total liabilities and equity $2,880

Calculate Paulson's WACC using market-value weights.