WACC long dash Book weights and market weights

Webster Company has compiled the information shown in the following 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 obtained in parts a and b. Explain the differences.

Source of capital	Book value	Market value	After-tax cost
Long-term debt	$4,000,000	$4,200,000	9%
Preferred Stock	$40,000	$55,000	11%
Common Stock Equity	$1,060,000	$4,039,000	17%
Totals	$5,100,000	$8,294,000

.The firm's weighted average cost of capital using book value weights is ?%. (Round to two decimal places.) (Show all parts)