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Posted: July 26th, 2024

U. Memphis COURSE FIR 3410 The Patrick Company’s year-end balance sheet is shown below.

WACCThe Patrick Company's year-end balance sheet is shown below. Its cost of common equity is 18%, its before-tax cost of debt is 11%, 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 $1,098. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. Calculate Patrick's WACC using market value weights. Round your answer to two decimal places.AssetsLiabilities And EquityCash$ 120Accounts payable and accruals$ 10Accounts receivable240Short-term debt48Inventories360Long-term debt$1,050Plant and equipment, net2,160Common equity1,772Total assets$2,880Total liabilities and equity$2,880 %

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