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.) \begin{tabular}{lrrc} \hline Source of capital & Book value & Market value & After-tax cost \\ \hline Long-term debt & $4,000,000 & $4,200,000 & 8% \\ Preferred stock & 40,000 & 63,000 & 11% \\ Common stock equity & 1,060,000 & 3,583,000 & 17% \\ Totals & $5,100,000 & $7,846,000 & \\ \hline \end{tabular}