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 10.5%, the cost of preferred stock is at

15.07%, and the cost of equity is at 18.31%. 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? (Round to two decimal Places.) 584.50 isn't the answer

Current assets	32980	Current liabilities	0
Long-term assets	68020	Long-term liabilities
		Bonds payable	62000
		Owners' equity
		Preferred stock	15000
		Common stock	24000
Total assets	101000	Total liabilities and owners' equity	101000

	Debt	Preferred Stock	Common Stock
Outstanding	62000	150000	960000
Market Price	910.88	109.06	34.98