Williams, Inc., has compiled the following information on its financing costs: Type of Financing Book Value Market Value Cost Short-term debt $ 13,000,000 $ 13,000,000 3.2 % Long-term debt 27,500,000 27,500,000 6.3 Common stock 10,000,000 69,000,000 12.1 Total $ 50,500,000 $ 109,500,000 The company is in the 25 percent tax bracket and has a target debt-equity ratio of 60 percent. The target short-term debt/long-term debt ratio is 20 percent.

a. What is the companys weighted average cost of capital using book value weights? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

b. What is the companys weighted average cost of capital using market value weights? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

c. What is the companys weighted average cost of capital using target capital structure weights?

d.	Which is the correct WACC to use for project evaluation?