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. No decimal places.) Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Source of capital Book value Market value After-tax cost Long-term debt $4,000,000 $3,840,000 9% Preferred stock 40,000 65,000 11% Common stock equity 1,060,000 3,085,000 17% Totals $5,100,000 $6,990,000 Print Done