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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
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 0% (Round to two decimal places) Data Table (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 Preferred stock 40 000 56 000 129 Common stock equity 1,060,000 4,145.000 14% Totals 55,100,000 58,321.000 Print Done Enter your answer in the answer box and then click Check Answer 2 pants remaining Clear All Check
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