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WACCMarket value weights The market values and after-tax costs of various sources of capital used...

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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 Data Table a. The firm's weighted average cost of capital, la, using market value weights is %. (Round to two decimal places.) (Click on the icon here in order to copy the contents of the data table be into a spreadsheet.) Source of capital Long-term debt Preferred stock Common stock equity Market value $700,000 $50,000 $650,000 Individual cost 5.3% 12.0% 16.0%

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