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P9-13 WACC: Market value weights Boots Mechanics is based in Manchester United Kingdom. The market values and after-tax costs of various sources of capital used

P9-13 WACC: Market value weights Boots Mechanics is based in Manchester United Kingdom. The market values and after-tax costs of various sources of capital used by the company are shown in the following table, Market value Individual cost Source of capital 20 vear band Common stock equity Long-term loan 4,000,000 10,000,000 a. Calculate the WACC for Boots Mechanics. b. Explain how the company can use the WACC if it wants to invest in a new project

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