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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 7.7% for both companies and the cost of equity is 12.32%, which company has the higher WACC? BE SURE TO USE ALL OF THE DIGITS (NOT ROUNDED VALUES) WHEN COMPUTING THE CAPITAL STRUCTURE WEIGHTS! 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.) O A. Trout, Inc. has a higher WACC at 10.75% than Salmon Enterprises with a WACC of 9.17%. O B. Salmon Enterprises has a higher WACC at 10.75% than Trout, Inc. with a WACC of 9.17%. 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 at of onnita If the s dobtic 7 70/ 2.32%, which company has the higher WACC? TURE WEIGHTS! - X Data table in order to copy its content into a spreadsheet. What is the book value Trout, Inc. % (Round to two de Current assets: Long-term assets. Total assets: $2,666,667 $9,333,333 $12,000,000 Current liabilities: Long-term liabilities: $1,391,175 $7,237,010 What is the market valu Owners' equity: $3,371,815 Salmon Enterprises % (Round to two de Which company has the Bonds outstanding: 3,000 selling at $1,062.65 Common stock outstanding: 260,000 selling at $23.84 O A. Trout, Inc. has a OB. Salmon Enterpri Print Done Click on the Icon
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