The patrick companys cost of common equity is 17 its


The Patrick Company's cost of common equity is 17%, its before-tax cost of debt is 11%, and its marginal tax rate is 40%. The stock sells at book value. Using the balance sheet below, calculate Patrick's WACC. Round your answer to two decimal places.

Assets Liabilities And Equity
Cash $???120
Accounts receivable 240
Inventories 360 Long-term debt $516
Plant and equipment, net 2,160 Common equity 2,364
Total assets $2,880 Total liabilities and equity $2880

 

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Finance Basics: The patrick companys cost of common equity is 17 its
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