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. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Source of capital Market value Individual cost Long-term debt $850,000 7.5% Preferred stock $40,000 9.9% Common stock equity $650,000 17.5%