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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

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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 a. The firm's Data table - X (Click on the icon heco in order to copy the contents of the datatable below Into a spreadsheet) Source of capital Book value Market value After tax cost Long term det $4,000,000 54.160,000 7% Preferred stock 40,000 50,000 11% Common stock equity 1.060,000 3.954000 14 Totals 55.100.000 $8.172.000 Print Done

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