WACCMarket value weights The market values and after-tax costs of various sources of capital used by Ridge Tool are shown in the following table: 5 a. Calculate the firm's weighted average cost of capital. b. Explain how the firm can use this cost in the Investment decision-making process. SID a. The firm's weighted average cost of capital, (using market value weights is%. (Round to two decimal places.) - X Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Source of capital Long-term delt Preferred stock Common stock equity Market value $750,000 $50,000 $450,000 Individual cost 7.2% 11.5% 17.7% Print Done WACCMarket value weights The market values and after-tax costs of various sources of capital used by Ridge Tool are shown in the following table: a. Calculate the firm's weighted average cost of capital. b. Explain how the firm can use this cost in the investment decision-making process. a. The firm's weighted average cost of capital, ra, using market value weights is %. (Round to two decimal places.)