WACC--Market 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 coat in the investment decision-making process a. The firm's weighted average cost of capital, r, using market value weights is 3% (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 $750,000 500,000 $400,000 Individual cost 7.4% 11.5% 15.4% ned Print Done