The Pawlson Company's year-end balance sheet is shown below. Its cost of common equity is 15%, its before-tax cost of debt is 9%, 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 $1,208. 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

Liability and Equity Long-term debt :

$1,150 Common Equity -

$1,662 total liability and equity -

$2,880 Total Assets -

$2,880 Total liabilities and equity-

The Pawlson Company's year-end balance sheet is shown below. Its cost of commo long-term debt sells at par value. The firm's total debt, which is the sum of the conm outstanding that sell for $4.00 per share. Assets Liabilities And Equity Cash $120 Accounts payable and 10 Accounts receivable Inventories Plant and equipment, net Total assets 240 360 2,160 $2,880 accruals Short-term debt Long-term debt Common equity Total liabilities and equity 58 1,150 1,662 $2,880 Calculate Pa wlson's WACC using market-value weights. Round your answer to two de 11.83