Book value versus market value components. The CFO of DMI is trying to determine the company's WACC. Brad, a promising MBA, says that the company should use book value to assign the WACC components' percentages. Angela, a long-time employee and experienced financial analyst, says that the company should use market value to assign the components' percentages. The after-tax cost of debt is at 11.6%, the cost of preferred stock is at 16.06%, and the cost of equity is at 20.85%. Calculate the WACC using both the book value and the market value approaches with the information in the popup window:

Which do you think is better? What is the book value adjusted WACC for DMI? Please use 5 decimals, thanks

Current assets	33633	Current liabilities	0
Long-term assets	69367	Long-term liabilities
		Bonds payable	65000
		Owners' equity
		Preferred stock	15000
		Common stock	23000
Total assets	103000	Total liabilities and owners' equity	103000
	Debt	Preferred Stock	Common Stock
Outstanding	65000	150000	920000
Market Price	1040.06	98.82	36.14