he Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 14%, 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, equi 8.00 per share. Assets Liabilities And Equity sh $120 Accounts payable and accruals $10 counts receivable 240 Short-term debt 53 ventories 360 Long-term debt 1,130 ant and equipment, net 2,160 Common equity $2,880 Total liabilities and equity 1,687 $2,880 Niculate Paulson's WACC using market-value weights. Do not round intermediate calculations. Round your answer to two decimal places.
he Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 14%, 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, equi 8.00 per share. Assets Liabilities And Equity sh $120 Accounts payable and accruals $10 counts receivable 240 Short-term debt 53 ventories 360 Long-term debt 1,130 ant and equipment, net 2,160 Common equity $2,880 Total liabilities and equity 1,687 $2,880 Niculate Paulson's WACC using market-value weights. Do not round intermediate calculations. Round your answer to two decimal places.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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