3. Ridge Tool has on its books the amounts and specific (after-tax table for each source of capital )costs shown in the following Source of capital Book value Individual cost Long-term debt Preferred stock $800,000 50,000 580,000 5.2% 11% 15% Common stock equity Calculate the firm's weighted average cost of capital (WACC) using book value weights. (8 points) 1) Weight for Long-term debt- Weight for Preferred stock- Weight for Common stock- WACO, = 2) Explain how the firm can use this cost in the investment decision-making process. (2 point