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:

Trout, Inc.

Current assets $2,000,000 Long-term assets $7,000,000 Total assets $9,000,000 Current liabilities $1,414,565 Long-term liabilities $5,158,329 Owners' equity $2,427,106

Salmon Enterprises

Bonds outstanding: 3,000 selling at $1,033.27

Common stock outstanding: 260,000 selling at $25.55

If the after-tax cost of debt is 8.2% for both companies and the cost of equity is 12.51%, which company has the higher WACC?