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 10.3%, the cost of preferred stock is at 13.69%, and the cost of equity is at 18.87%. 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? . Current assets Long-term assets Total assets DMI Balance Sheet ($ in thousands) $32,653 Current liabilities $67,347 Long-term liabilities Bonds payable Owners' equity Preferred stock Common stock Total liabilities and $100,000 owners' equity $0 $59,000 $15,000 $26,000 $100,000 Market Information Outstanding Market Price Debt 59,000 $1,008.07 Preferred Stock 150,000 $106.92 Common Stock 1,040,000 $34.65