This OU VODU WACO Book weights and market weights Webster Company has compiled the information shown in the following table 1. Calculate the weighted average cost of capital using book valve weights b. Calculate the weighted average cost of capital using market value wolghts . Compare the answers obtained in parts a and bExplain the differences a. The firm's weighted average cost of capital sing book value weight is (Round to two decimal places) b. The firm's weighted average cost of capital sing market value weight is (Round to two decimat places) c. Compare the answers obtained in parts and bExplain the differences Select the best answer below) O A The book value approach yields a lower cost of capital because the cost of the components of the capital where are called in the prevating to rock inget higher value than market value the cost of capital is much higher when using the book valve we OD The market value approach yields a lower cost of capital because the cost of the components of the care are called ning the proving promoc lower value than its book value the cost of capital is much lower when using the market value weights Oc: The book value approach is a higher cost of capital because the couls of the components of the capital recited wg heroes recom lower value than market value the cost of capital is much higher when using the book al weight OD. The masat e approach yields a higher cost of capital because the cost of the components of the capital nature remained using the primare che non higher value than book value the cost of capital is much higher when using the market value weight i Data Table - X (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) ng Market value After-tax cost bi m 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 iling $4,040,000 65,000 4,357,000 $8,462,000 8% 11% 16% ita is ling me ap Sn Jailing Print Done