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28 Sep 2019
The Patrick Company's cost of common equity is 18%, its before-taxcost of debt is 8%, and its marginal tax rate is 40%. The stocksells at book value. Using the balance sheet below, calculatePatrick's WACC. Round your answer to two decimal places.
Assets: Cash--$120,Accounts Receivable--$240, Inventories--$360,Plant and Equipment--$2,160 {TOTAL ASSETS=$2,880}
Liabilities and Equity: Long-term debt--$563, CommonEquity--$2,317
{TOTAL LIABILITIES AND EQUITY=$2,880}
Answer:______________%
The Patrick Company's cost of common equity is 18%, its before-taxcost of debt is 8%, and its marginal tax rate is 40%. The stocksells at book value. Using the balance sheet below, calculatePatrick's WACC. Round your answer to two decimal places.
Assets: Cash--$120,Accounts Receivable--$240, Inventories--$360,Plant and Equipment--$2,160 {TOTAL ASSETS=$2,880}
Liabilities and Equity: Long-term debt--$563, CommonEquity--$2,317
{TOTAL LIABILITIES AND EQUITY=$2,880}
Answer:______________%
Hubert KochLv2
28 Sep 2019
