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P9-14 (similar to) Question Help O WACC-Book weights and market weights Webster Company has compiled the information shown in the following table: 2 a. Calculate
P9-14 (similar to) Question Help O WACC-Book weights and market weights Webster Company has compiled the information shown in the following table: 2 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 %. (Round to two decimal places.) i Data Table (Click on the loon here in order to copy the contents of the data table below into a spreadsheet.) Source of capital Long-term debt Preferred stock Common stock equity Totals Book value $4,000,000 40.000 1,060,000 $5,100,000 Market value $3,960,000 55,000 2,820,000 $6.835.000 After-tax cost 8% 12% 15% Print Done
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