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 7.1%, the cost of preferred stock is at 11.23%, and the cost of equity is at 16.47%. 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? What is the book value adjusted WACC for DMI? % (Round to two decimal places.) i Data Table $65,000 Click on the Icon in order to copy its content into a spreadsheet. DMI Balance Sheet ($ in thousands) Current assets $33,306 Current liabilities Long-term assets $68,694 Long-term liabilities Bonds payable Owners' equity Preferred stock Common stock Total liabilities and Total assets S102.000 owners' equity $15,000 $22,000 $102,000 Click on the icon in order to copy its content into a spreadsheet. Market Information Debt Preferred Stock Outstanding 65.000 150.000 Market Price $1,029.38 $101.64 Common Stock 880,000 $31.95