The Pawlson Company's year-end balance sheet is shown below. Its cost of common equity is 14%, 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 firm’s total debt, which is the sum of the company’s short-term debt and long-term debt, equals $1,160. 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 60 Inventories 360   Long-term debt 1,100 Plant and equipment, net 2,160   Common equity 1,710 Total assets $2,880   Total liabilities and equity $2,880 Calculate Pawlson's WACC using market-value weights. Round your answer to two decimal places. Do not round your intermediate calculations.

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Chapter1: Financial Statements And Business Decisions
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The Pawlson Company's year-end balance sheet is shown below. Its cost of common equity is 14%, 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 firm’s total debt, which is the sum of the company’s short-term debt and long-term debt, equals $1,160. 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 60
Inventories 360   Long-term debt 1,100
Plant and equipment, net 2,160   Common equity 1,710
Total assets $2,880   Total liabilities and equity $2,880

Calculate Pawlson's WACC using market-value weights. Round your answer to two decimal places. Do not round your intermediate calculations.
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