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, using market value weights is 1% (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 Long-term debt Preferred stock Common stock equity Market value $950,000 $50,000 $400,000 Individual cost 6.3% 10.2% 14.5% Print Done be plain how the firm can use the cost in the investment decision-making process Select the best answer below) O A The WACC is the rate of retum that the form must receive on long-term projects to maintain the value of the fim. The cost of capital can be compared to the return for a project to determine whether the project is acceptable OB. The WACC is the rate of return that the firm must receive on short-term projects to maintain the value of the firm. The cost of capital can be compared to the dollar value for a project to determine whether the project is comptable OC. The WACC is the rate of relum that the firm must not exceed on long-term projects to maintain the value of the firm. The cost of capital can be compared to the return for a project to determine whether the project is acceptable OD. The WACC is the rate of return that the firm must exceed on long term projects to maintain the value of them. The cost of capital can be compared to the door value for a project to determine whether the project is comptable