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WACCBook weights and market weights Webster Company has compiled the information shown in the following table: a. Calculate the weighted average cost of capital using

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WACCBook 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. al places.) - X Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Source of capital Book value Market value After-tax cost Long-term debt $4,000,000 $3,880,000 9% Preferred stock 40,000 55,000 13% Common stock equity 1,060,000 3,890,000 14% Totals $5,100,000 $7,825,000

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