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 8.5%, the cost of preferred stock is at 12.38%, and the cost of equity is at 17.42%. Calculate the WACC using both the book value and the market value approaches with the information in the popup window: E. Which do you think is better? $0 Click on the icon in order to copy its content into a spreadsheet. DMI Balance Sheet ($ in thousands) Current assets $32,327 Current liabilities Long-term assets $66,673 Long-term liabilities Bonds payable Owners' equity Preferred stock Common stock Total liabilities and Total assets $99,000 owners' equity $60,000 $13,000 $26,000 $99,000 Click on the icon in order to copy its content into a spreadsheet. Market Information Debt Preferred Stock Outstanding 60,000 130,000 Market Price $995.76 $95.78 Common Stock 1,040,000 $34.44