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The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is...

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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 10%, and its marginal tax rate is 25%. 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 debt and long-term debt, equals $1,098. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. Assets Cash $ 10 48 Accounts receivable 240 Liabilities And Equity Accounts payable and accruals Short-term debt Long-term debt Common equity Total liabilities and equity Inventories 1,050 360 2,160 1,772 Plant and equipment, net Total assets $2,880 $2,880 Calculate Paulson's WACC using market value weights. Do not round intermediate calculations. Round your answer to two decimal places. %

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