WACCBook 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. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Source of capital Book value Market value After-tax cost Long-term debt $4,000,000 $4,120,000 9% Preferred stock 40,000 66,000 13% Common stock equity 1,060,000 4,293,000 18% Totals $5,100,000 $8,479,000