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Unformatted text preview: The weighted average cost of debt, by using market values is: =(104.130/439.194*3.399)+(108.814/439.194*1.317)+(113.150/439.194*5.644)+(113.100/439.1 94*3.671) =0.8058+0.3262+1.4540+0.9453 =3.5313% I would say that it does not make a difference whether or not we use the book value or market value weights considering both will still be 3.5% in both cases....
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- Spring '10