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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 8.5% for both companies and the cost of equity is 13.31%, which company has the higher WACC? What is the book value adjusted WACC for Trout, Inc.? % (Round to two decimal places.) = X Data table Click on the Icon in order to copy its content into a spreadsheet. Trout, Inc. Current assets: $2,000,000 Current liabilities: Long-term assets: $7.000.000 Long-term liabilities: Total assets: $9,000,000 Owners' equity: $1,109,358 $5,576,936 $2,313,706 Salmon Enterprises Bonds outstanding: 3.000 selling at $1,011.39 Common stock outstanding: 260,000 selling at $24.85 Print Done
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