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WACC-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

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WACC-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 a. The firm's weighted average cost of capital using book value weights is % (Round to two decimal places ) WACC-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 Data Table - decimal places) a. (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 6% Preferred stock 40,000 66,000 13% Common stock equity 1,060,000 3,106,000 17% Totals $5,100,000 $7,052.000 Print Done

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