Please answer all the questions. Thanks!

QUESTION - 3 (20 marks) Webster Company Ltd has compiled the following information. Source of capital Book value Market Value After tax Cost Long-term debt $ 4,000,000 $3,840,000 6.0% Preference share capital 40,000 60,000 13% Ordinary share equity 1,060,000 3,000,000 17% Totals $5,100,000 6,900,000 a. Calculate the WACC (to the nearest two decimal places) using book value weights. (9 marks) b. Calculate the WACC (to the nearest two decimal places) using market value weights. (9 marks) c. Compare the answers obtained in parts a and b. Explain the differences. (2 marks)