3. Problem 10.09 Click here to read the eBook: An Overview of the Weighted Average Cost of Capital (WACc) Click here to read the eBook: Basic Definitions WACC 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 12%, 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 $1,116. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. Assets Liabilities And Equity Cash s 120 Accounts payable and accruals Short-term debt Long-term debt Common equity $10 Accounts receivable Inventories Plant and equipment, net Total assets 240 360 2,160 56 1,060 1,754 $2,880 2,880Total liabilities and equity Calculate Pawison's WACC using market-value weights. Round your answer to two decimal places. Do not round your intermediate calculations