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 8.7%, the cost of preferred stock is at 12.35%, and the cost of equity is at 17.29%. Calculate the WACC using both the book value and the market value approaches with the information in the popup window: 7: Which do you think is better? - X Data table What is the book value adjusted WACC for DMI? 1% (Round to two decimal places.) $0 $61,000 Click on the icon in order to copy its content into a spreadsheet DMI Balance Sheet ($ in thousands) Current assets $32,000 Current liabilities Long-term assets $66,000 Long-term liabilities Bonds payable Owners' equity Preferred stock Common stock Total liabilities and Total assets $98,000 owners' equity $14,000 $23,000 $98,000 Click on the Icone in order to copy its content into a spreadsheet. Market Information Debt Preferred Stock Outstanding 61,000 140,000 Market Price $989.67 $95.66 Common Stock 920,000 $36.22 Print Done