K P9-13 (similar to) Question Help WACC -Market value weights The market values and after-tax costs of various sources of capital used by Ridge Tool are shown in the following table: a. Calculate the firm's weighted average cost of capital b. Explain how the firm can use this cost in the investment decision-making process. i Data Table %. (Round to two decimal places.) a. The firm's weighted average cost of capital, ra, using market value weights is (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 Individual cost Market value $850,000 $80,000 $500,000 Long-term debt 7.7% Preferred stock 11.3% Common stock equity 16.4% Print Done