1. ABC Company has on its books the amounts and specific costs shown in the following table for each source of capital. Source of capital Weight Specific cost Long-term debt 7.5% Preferred stock 30% 12.0% Common stock equity 30% 15.0% 40% Calculate the weighted average cost of capital 2. ABC Company has on its books the amounts and specific (after-tax) costs shown in the following table for each source of capital. Source of capital Book value Specific cost Long-term debt $60,000 6.5% Preferred stock 25,000 13.0% Common stock equity 55,000 17.0% a) Calculate the weighted average cost of capital