Please solve using excel!

WACCMarket value weights The market values andafter-tax costs of various sources of capital used by Ridge Tool are shown in the followingtable: LOADING...

Source of capital Market Value Individual Cost

Long-term debt $800,000 6.7%

Preferred stock $80,000 12.7%

Common stock equity $500,000 17.8%

a. Calculate thefirm's weighted average cost of capital.

b.Explain how the firm can use this cost in the investmentdecision-making process.

a.Thefirm's weighted average cost ofcapital, ra, using market value weights is nothing %. (Round to two decimalplaces.)