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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
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 7.4% for both companies and the cost of equity is 12.41%, which company has the higher WACC? What is the book value adjusted WACC for Trout, Inc.? % (Round to two decimal places.) What is the market value adjusted WACC for Salmon Enterprises? \% (Round to two decimal places.) Which company has the higher WACC? (Select the best response.) A. Trout, Inc. has a higher WACC at 11.25% than Salmon Enterprises with a WACC of 9.01%. B. Salmon Enterprises has a higher WACC at 11.25% than Trout, Inc. with a WACC of 9.01%. 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 7.4% for both companies and the cost of equity is 12.41%, which company has the higher WACC? What is the book value adjusted WACC for Trout, Inc.? % (Round to two decimal places.) What is the market value adjusted WACC for Salmon Enterprises? \% (Round to two decimal places.) Which company has the higher WACC? (Select the best response.) A. Trout, Inc. has a higher WACC at 11.25% than Salmon Enterprises with a WACC of 9.01%. B. Salmon Enterprises has a higher WACC at 11.25% than Trout, Inc. with a WACC of 9.01%
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