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 17%, its before-tax cost of debt is 9%, 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 $1,133. 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 | 63 | |
| Inventories | 360 | Long-term debt | 1,070 | |
| Plant and equipment, net | 2,160 | Common equity | 1,737 | |
| Total assets | $2,880 | Total liabilities and equity | $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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