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ook weights and market weights Webster Company has compled the information shown n the folowng table a. Calculate the weighted average cost of capital using

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ook weights and market weights Webster Company has compled the information shown n the folowng 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 in parts a and b Explain the differences a. The firm's weghted average cost of capital using book value weights is 8 12 % (Round to two decimal places ) b. The fem's woighted average cost of capital using markot valuo weights is (Round to two decimal places) Data Table (Click on the icon located on the top-right cormer of the data table below in oeder to copy its contents into a spreadsheet) Incorre Source of capital Book value Market value After-tax cost o $4,040,000 $4,000,000 40,000 1060,000 $5 100,000 62,000 Preferred stock Common stock equity Totals 4,431,000 8,533 000 16% Print Done

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