Question: please answer B and C WACC-Book weights and market weights Webster Company has compiled the information shown in the following table: B a. Calculate the

WACC-Book weights and market weights Webster Company has compiled the information shown in the following table: B a. Calculate the weighted average cost of capital using book value weights b. Calculate the weighted average cost of capital using market value weights. c. Compare the answers obtained in parts a and b. Explain the differences. a. The firm's weighted average cost of capital using book value weights is 1% (Round to two decimal places.) i Data Table - (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Source of capital Long-term debt Preferred stock Common stock equity Totals Book value $4,000,000 40,000 1,060,000 $5,100,000 Market value $4,080,000 62,000 2,851,000 $6,993,000 After-tax cost 8% 11% 16% Print Done
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