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 15.49%, and the cost of equity is at 18.79%. 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? Data table Click on the Icon in order to copy its content into a spreadsheet. DMI Balance Sheet ($ in thousands) $29,388 Current liabilities Current assets Long-term assets $60,612 Long-term liabilities $0 $57,000 Bonds payable Owners' equity Preferred stock $13,000 Common stock $20,000 Total liabilities and Total assets $90,000 owners' equity $90,000 Click on the Icon in order to copy its content into a spreadsheet. Market Information Debt Preferred Stock Outstanding 57,000 130,000 Market Price $1,008.65 $109.91 Common Stock 800,000 $32.32