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The Poulon Company's year end balance sheet is shown below. Its cost of common equirys 18%, its before-tax cost of debt is 12%, and its
The Poulon Company's year end balance sheet is shown below. Its cost of common equirys 18%, its before-tax cost of debt is 12%, and its marginal tax rate 25%. Assume that the firm's long-term dat sells at par value. The firm's total debt, which is the sum of the company's short-term debt and long-term debt, equals $1,214. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. Assets Liabilities And Equity Cash $ 120 Accounts payable and accruals $10 Accounts receivable 240 Short-term debt 64 Inventories 360 Long-term debt 1,150 Plant and equipment, net 2,160 Common equity 1,656 Total assets $2,880 Total liabilities and equity $2,50 Calculate Paulson's WACC using market value weights. Do not round intermediate calculations. Round your answer to two decimal places
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