WACC Market value weights The market values and after-tax costs of various sources of capital used by Ridge Tool are shown in the following table: a. Calculate the firm's weighted average cost of capital b. Explain how the firm can use this cost in the investment decision-making process a. The firm's weighted average cost of capital, te, using market value weights is %. Round to two decimal places.) b. Explain how the firm can use this cost in the investment decision-making process. (Select the best answer below) OA. The WACC in the rate of return that the fem must not exceed on long dorm projects to maintain the value of the firm. The cost of capital can be compared to the return for a project to determine where the project is acceptati OB. The WACC is the rate of return that the firm must exceed on long term projects to maintain the value of them. The cost of capital can be compared to the dollar value for a project to determine whether the projects OC. The WACC is the two of return that the form must receive on short term projects to maintain the value of the form. The cost of capital can be compared to the dollar value for a project to determine whether the project is acceptable OD. The WACC is the rate of return that the firm must receive on long-term projects to maintain the value of the firm. The cost of capital can be compared to the return for a project to determine whether the project is acceptable. WACC Market value weights The market values and other tax costs of various sources of capital used by Ridge Tool are shown in the following table ! a. Calculate the firm's weighted average cost of capital b. Explain how the firm can use this cost in the investment decision-making process The few's weighted average cost of capital, using market value weights is % (Round to two decimal places) b. Explain how the firm can use this cost in the investment decision-making process. (Select the best answer below) OA. The WACC is the rate of return that the firm must not exceed on long term projects to maintain the value of the firm. The cost of capital can be compared to the retum for a project to determine whether the project is acceptable OB. The WACC is the rate of return that the firm must exceed on long-term projects to maintain the value of the firm. The cost of capital can be compared to the dollar value for a project to determine whether the project is OC. The WACC is the rate of return that the firm must receive on short term profects to maintain the value of the tem. The cost of capital can be compared to the door value for a project to determine whether the project is scopable OD. The WACC is the rate of return that the form must receive on long term projects to maintain the value of the tem. The cost of capital can be compared to the return for a project to determine whether the project is acceptatie - X Data Table Click on the icon here in order to copy the contents of the datatable below Source of capital Longform debit Preferred stock Common stock equity Market value 5900,000 570,000 $450.000 Individual cost 62N 122 Print Done Click to select your answers
