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.) (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 $3,960,000 7% Preferred stock 40,000 62,000 11% Common stock equity 1,060,000 3,721,000 17% Totals $5,100,000 $7,743,000