Question: QUESTION 2 1. Williams, Inc., has compiled the following information on its financing costs: Types of Financing Book Value Market Value Cost Short-term debt $12,009,398

QUESTION 2 1. Williams, Inc., has compiled the following information on its financing costs:

Types of Financing Book Value Market Value Cost

Short-term debt $12,009,398 $13,902,556 4.8%

Long-term debt $21,666,572 $26,235,111 7.2%

Common Stock $10,292,761 $74,802,916 13.3%

The company is in the 38% tax bracket.

a. What is the company's weighted average cost of capital using book value weights?

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