Question $9(1$ point$)$

The Patrick Company's year$-$end balance sheet is shown below. Its cost of common equity is $16\mathrm{.}60\%,$ its before$-$tax cost of debt is $8\mathrm{.}60\%,$ and its marginal tax rate is $35\mathrm{.}00\%.$ Assume that the firm's long$-$term debt sells at par value. The firm has $1,360$ shares of common stock outstanding that sell for $$8\mathrm{.}60$ per share. Calculate Patrick's WACC using market value weights.

$\backslash$table$[[$Assets$,,$Liabilities and Equity,$],[$Cash$,1,000,,],[$Accounts receivable,$2,000,,],[$Inventories$,7,000,$Long$-$term debt,$8,000],[$Plant and equipment, net,$10,000,$Common equity,$12,000],[$Total assets,$20,000,$Total liabilities and equity,$20,000]]$

$12\mathrm{.}128\%$

$12\mathrm{.}196\%$

$12\mathrm{.}600\%$

$13\mathrm{.}400\%$

$13\mathrm{.}351\%$