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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 after-tax cost of debt is 8.7% for both companies and the cost of equity is 12.97%, which company has the higher WACC? What is the book value adjusted WACC for Trout, Inc.? % (Round to two decimal places.) Current assets Long-term assets Total assets $2 222.222 $7.777,778 $10.000 000 Trout, Inc. Current liabilities: Long-term liabilities Owners' equity $1.357.427 $6.058.264 92 584 309 Salmon Enterprises Bonds outstanding: 3.000 selling at $937.15 Common stock outstanding: 260.000 selling at $35.12
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