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 11.6%, the cost of preferred stock is at 15.33%, and the cost of equity is at 20.45%. Calculate the WACC using both the book value and the market value approaches with the information in the popup window: B 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 $29,714 Current liabilities Long-term assets $61,286 Long-term liabilities Bonds payable Owners' equity Preferred stock $57,000 $12,000 $22,000 Common stock Total liabilities and owners' equity Total assets $91,000 $91,000 Click on the Icon in order to copy its content into a spreadsheet. Market Information Debt Preferred Stock Common Stock Outstanding Market Price 57,000 $910.98 120,000 $109.22 880,000 $38.05