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 7.8%, the cost of preferred stock is at 10.92%, and the cost of equity is at 15.95%. 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? - X Data table What is the book value adjusted WACC for DMI? % (Round to two decimal places.) SO 564,000 Click on the icon in order to copy is content into a spreadsheet. DMI Balance Sheet ($ in thousands) Current assets S33,633 Current liabilities Long-term assets S69,367 Long-term liabilities Bonds payable Owners' equity Preferred stock Common stock Total liabilities and Total assets S103,000 owners' equity $15,000 $24,000 $103,000 Click on the icon in order lo copy its content into a spreadsheet. Market Information Debt Preferred Stock Outstanding 84,000 150,000 Market Price $1.059.57 $103.94 Common Stock 960,000 $37.11 Help me solve this View an example Clear all Check