Wcc the patrick companys cost of common equity is 16 its

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WACC The Patrick Company's cost of common equity is 16%, its before-tax cost of debt is 13%, and its marginal tax rate is 40%. The stock sells at book value. Using the following balance sheet, calculate Patrick's WACC.

Assets

Cash

$ 120

Accounts receivable

240

Inventories

360

Plant and equipment, net

2,160

Total assets

$2,880

 

Liabilities and Equity

Long-term debt

$1,152

Common equity

1,728

Total liabilities and equity

$2,880

Reference no: EM13575544

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