The 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 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 $1,167. 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 Liabilities and Equity Cash $ 120 Accounts payable and accruals 10 Accounts receivable 240 Short-term debt 47 Long-term debt Common equity Inventories 360 1,120 Plant and equipment, net 2,160 1,703 Total assets $2,880 Total liabilities and equity $2,880