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31 Mar 2019
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.
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.
Jarrod RobelLv2
31 Mar 2019
