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. Market value After-tax cost Source of capital Long-term debt Preferred stock Book value $4,000,000 40,000 Common stock equity 1060,000 $3,840,000 60,000 3,000,000 S5100.000 900,000 6% 13% 17% Totals $6,900,000