Excel Online Activity: WACC Question 1 0/10 Video Submit Excel Online Structured Activity: WACC The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 17%, its before-tax cost of debt is 8%, 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. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. X Open spreadsheet Calculate Paulson's WACC using market value weights. Round your answer to two decimal places. Do not round your intermediate calculations. Assets Liabilities And Equity Cash $ 120 Accounts payable and accruals S 10 Short-term debt Accounts receivable 240 Inventories Plant and equipment, net 2.160 56 $1,060 360 Long-term debt 1,754 Common equity Total liabilities and equity Total assets $2,880 $2,880 Check My Work Reset Problem 1 WACC 3 4 Cost of common equity (1) Before-tax cost of debtr.) Marginal tax rate (T) Common shares outstanding Current stock price Long-term debt sells at par value 17.00% 8.00% 40.00% 576 $4.00 Yes 6 7 8 10 11 12 13 14 15 16 17 Balance Sheet: Assets Cash Account receivable Inventories Plant and equipment, net Total assets $120.00 $240.00 $360.00 S2 160.00 $2.880.00 Liabilities and Equity Accounts payable and accruals Short-term debt Long-term debt Common equity Total liabilities and equity $10.00 S56.00 S1,060.00 $1,754.00 S2.880.00 19 Market value of total debt 20 Market value of common equity 21 Total capital Formulas #N/A #NVA #N/A 23 Percentage of debt 24 Percentage of common equity #N/A #N/A After-tax cost of debt #N/A 28 Weighted Average Cost of Capital (WACC) #N/A