Calculate patrick wacc using market value weights

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Reference no: EM132024964

The Patrick Company's year-end balance sheet is shown below. Its cost of common equity is 15%, 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 $1,155. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. Calculate Patrick's WACC using market value weights. Round your answer to two decimal places. Assets Liabilities And Equity Cash $ 120 Accounts payable and accruals $ 10 Accounts receivable 240 Short-term debt 45 Inventories 360 Long-term debt $1,110 Plant and equipment, net 2,160 Common equity 1,715 Total assets $2,880 Total liabilities and equity $2,880.

Reference no: EM132024964

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