WACC-Book weights and market weights Webster Company has compiled the information shown in the following table 1 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 1% (Round to two decimal places) ket i Data Table e cos e cog (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) ost of Source of capital Long term debt Preferred stock Common stock equity Totals Book value $4,000,000 40,000 1,060,000 $5,100,000 Market value $4,040,000 65,000 3,138,000 $7,243,000 After-tax cost 7% 13% 16% Print Done er box Clear All