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 11.8%, the cost of preferred stock is at 1575%, and the cost of equity is at 19.02% 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? MGOusliuet. Current assets Long-term assets $0 $63,000 DMI Balance Sheet ($ in thousands) $34,612 Current liabilities $71,388 Long-term liabilities Bonds payable Owners' equity Preferred stock Common stock Total liabilities and $106,000 owners' equity $13,000 $30,000 Total assets $106,000 Click on the Icon in order to copy its content into a spreadsheet. Market Information Debt Preferred Stock Outstanding 63,000 130,000 Market Price $1,029.72 $99.12 Common Stock 1,200,000 $32.76