WACC: Market value weight: Boot mechanic is based in Manchester United Kingdom. The market values and after-tax costs of various sources of capital used by the company are shown in the following...

WACC: Market value weight: Boot mechanic is based in Manchester United Kingdom. The market values and after-tax costs of various sources of capital used by the company are shown in the following table.

1. Calculate the WACC for Boots Mechanics


2. Explain how the company can this cost if it wants to invest in a new project
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   

   Source of capital	Market Value	Individual Cost
   20-years bond	$6,000,000	8%
   Common stock equity	4,000,000	14
   Long-term Loan	10,000,000	10