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 8.2% for both companies and the cost of equity is 14.55%, which company has the higher WACC?

What is the book value adjusted WACC for Trout, Inc.?

What is the book value adjusted WACC for Salmon Enterprises?

Trout Inc:

Current assets 2,666,667 Long-term assets 9,333,333 Total assets 12,000,000 Current liabilities 1,843,676 Long-term liabilities 6,920,363 Owners' equity 3,235,961

Salmon Enterprises:

Bonds Outstanding: 3,000 selling at $1,021.35

Common Stock Outstanding: 260,000 selling at $36.77