The Paulson Company’s year-end balance sheet is shown here. 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, equals $1,167. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. Calculate Paulson’s WACC using market-value weights.

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Assets Cash Accounts receivable Inventories Plant and equipment, net Total assets $ 120 240 360 2,160 $2,880 Liabilities and Equity Accounts payable and accruals Short-term debt Long-term debt Common equity Total liabilities and equity $ 10 47 1,120 1,703 $2,880