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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
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. two decimal places.) 1 Data Table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Book value Market value Source of capital Long-term debt Preferred stock Common stock equity Totals $4,000,000 40,000 1,060,000 $5,100,000 $3,840,000 60,000 3,000,000 $6,900,000 After-tax cost 6% 13% 17% Print Done Check
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