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help with parts a,b,c WACC-Book weights and market weights Webster Company has compiled the information shown in the following table: a. Calculate the weighted average
help with parts a,b,c
WACC-Book weights and market weights Webster Company has compiled the information shown in the following table: 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.) 0 Data Table (Click on the icon located on the top-right comer of the data table below in order to copy its contents into a spreadsheet.) Source of capital Book value Market value After-tax cost Long-term debt $4,000,000 $4,120,000 9% Preferred stock 40,000 61,000 11% Common stock equity 1,060,000 4,113,000 14% Totals $5,100,000 $8,294,000 Print Done Step by Step Solution
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