Common equity is 16% and its before tax cost is 13% and its marginal tax rate is 40%. Assume that the firm's long term debit sells at par value. The firm has 576 shares of common stock outstanding that sells for $4.00 per share. Calculate the WACC using market value weights.
Assets Liabilities & Equity
Cash $120
Accts Rec $240
Inventories $60 Long term debt $1152
Plant & Equipment $2160 Common Equity $1728
Total Assets $2880 Total liabilities & Equity $2880