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: B 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, (g, using market value weights is % (Round to two decimal places.) 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: B 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 %. (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 debt Preferred stock Common stock equity Market value $800,000 $80.000 $550.000 Individual cost 6.9% 10.7% 17.5% Print Done