Williams, Inc., has compiled the following information on its financing costs: Type of Financing Book Value Market Value Cost Short-term debt $ 15,200,000 $ 14,100,000 4.3 % Long-term...

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Williams, Inc., has compiled the following information on itsfinancing costs:

  Type of Financing Book Value Market Value Cost
  Short-term debt $ 15,200,000 $ 14,100,000 4.3 %
  Long-term debt 44,000,000 37,400,000 7.4
  Common stock 12,200,000 102,000,000 13.2
  Total $ 71,400,000 $ 153,500,000

The company is in the 21 percent tax bracket and has a targetdebt-equity ratio of 75 percent. The target short-termdebt/long-term debt ratio is 15 percent.

a.
What is the company’s weighted average cost of capital usingbook value weights? (Do not round intermediate calculationsand enter your answer as a percent rounded to 2 decimal places,e.g., 32.16.)
b. What is the company’s weighted average cost of capital usingmarket value weights? (Do not round intermediatecalculations and enter your answer as a percent rounded to 2decimal places, e.g., 32.16.)
c. What is the company’s weighted average cost of capital usingtarget capital structure weights? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)

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Williams, Inc., has compiled the following information on itsfinancing costs: Type of FinancingBook ValueMarket ValueCost Short-term debt$15,200,000$14,100,0004.3% Long-term debt44,000,00037,400,0007.4 Common stock12,200,000102,000,00013.2 Total$71,400,000$153,500,000 The company is in the 21 percent tax bracket and has a targetdebt-equity ratio of 75 percent. The target short-termdebt/long-term debt ratio is 15 percent. a.What is the company’s weighted average cost of capital usingbook value weights? (Do not round intermediate calculationsand enter your answer as a percent rounded to 2 decimal places,e.g., 32.16.)b.What is the company’s weighted average cost of capital usingmarket value weights? (Do not round intermediatecalculations and enter your answer as a percent rounded to 2decimal places, e.g., 32.16.)c.What is the company’s weighted average cost of capital usingtarget capital structure weights? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)

Type of Financing	Book Value		Market Value		Cost
Short-term debt	$	15,200,000	$	14,100,000	4.3	%
Long-term debt		44,000,000		37,400,000	7.4
Common stock		12,200,000		102,000,000	13.2

Total	$	71,400,000	$	153,500,000

a.	What is the company’s weighted average cost of capital usingbook value weights? (Do not round intermediate calculationsand enter your answer as a percent rounded to 2 decimal places,e.g., 32.16.)
b.	What is the company’s weighted average cost of capital usingmarket value weights? (Do not round intermediatecalculations and enter your answer as a percent rounded to 2decimal places, e.g., 32.16.)
c.	What is the company’s weighted average cost of capital usingtarget capital structure weights? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)