WACC-Market value weights The market values and after-tax costs various sources of capital used by Ridge Tool are shown in the following table: b ule the firos ee e this ept t nt decision-making process. %. (Round to two decimal places.) a. The firm's weighted average cost of capital, ra, using market value weights is b. Explain how the firm can use this cost in the investment decision-making process. (Select the best answer below.) O A. The WACC is the rate of return that the firm must receive on long-term projects to maintain the value the project is acceptable. Q B. The WACC is the rate of return that the firm must exceed on long-term projects to maintain the value whether the project is acceptable. c. The WACC is the rate f the firm. The cost of capital can be compared to the return for a project to determine whether f the firm. The cost of capital can be compared to the dollar value for a project to determine the retum for a project f return that the firm must not exceed on long-term projects to maintain the value of the firm. The cost of capital can be compared determine whether the project is acceptable. the dollar value for a project to detemine D. 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 whether the project is acceptable. compared Data Table (Click on the icon located on the top-right comer of the data table below order to copy its contents into a spreadsheet.) Source of capital Long-term de Individual cost Market value $800,000 12 1% Common stock equity $550,000 15.4% Click to select your answer(s). Print Done