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1) What is the book value adjusted WACC for Trout Inc? __% (Round to two decimal places.) 2) What is the market value adjusted WACC
1) What is the book value adjusted WACC for Trout Inc? __% (Round to two decimal places.)
2) What is the market value adjusted WACC for Salmon Enterprises? __% (Round to two decimal places.)
3) Which company has a higher WACC
Book value versus market value components. Compare Trout, Inc. with Salmon Enterprises, using the balance sheet of Trout and the market data of Salmon for the weights in the weighted average cost of capital: . If the after-tax cost of debt is 9.2% for both companies and the cost of equity is 14.34%, which company has the higher WACC? Data Table Click on the icon in order to copy its content into a spreadsheet. Trout, Inc. Current assets: $1,777,778 Current liabilities: Long-term assets: $6,222,222 Long-term liabilities: Total assets: $8,000,000 Owners' equity: $527,314 $4,853,370 $2,619,316 Salmon Enterprises Bonds outstanding: 3,000 selling at $923.72 Common stock outstanding: 260,000 selling at $37.85 Print Done Book value versus market value components. Compare Trout, Inc. with Salmon Enterprises, using the balance sheet of Trout and the market data of Salmon for the weights in the weighted average cost of capital: . If the after-tax cost of debt is 9.2% for both companies and the cost of equity is 14.34%, which company has the higher WACC? Data Table Click on the icon in order to copy its content into a spreadsheet. Trout, Inc. Current assets: $1,777,778 Current liabilities: Long-term assets: $6,222,222 Long-term liabilities: Total assets: $8,000,000 Owners' equity: $527,314 $4,853,370 $2,619,316 Salmon Enterprises Bonds outstanding: 3,000 selling at $923.72 Common stock outstanding: 260,000 selling at $37.85 Print DoneStep by Step Solution
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