Calculate patrick wacc using market value weights

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The Patrick Company's year-end balance sheet is shown below. Its cost of common equity is 17%, 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 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 receivable	240
Inventories	360	Long-term debt	$1,324
Plant and equipment, net	2,160	Common equity	1,556
Total assets	$2,880	Total liabilities and equity	$2,880

Calculate Patrick's WACC using market value weights. Round your answer to two decimal places.

Reference no: EM13266979

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