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WACC-Book weights and market weights Webster Company has compiled the information shown in the following table: EEB a. Calculate the weighted average cost of capital
WACC-Book weights and market weights Webster Company has compiled the information shown in the following table: EEB a. Calculate the weighted average cost of capital using book value weights b. Calculate the weighted average cost of capital using market value weight:s c. Compare the answers obtained in parts a and b. Explain the differences X o two decimal places.) Data Table to two decimal places.) st answer below.) (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 Long-term debt Preferred stock Common stock equity ,060,000 Totals mponents of the capital structure are calculated omponents of the capital structure are calculate ponents of the capital structure are calculated mponents of the capital structure are calculate Book value $4,000,000 40,000 Market value After-tax cost $3,840,000 5% 13% 17% 60,000 3,000,000 $6,900,000 $5,100,000 PrintDone
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