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 8.4%, the cost of preferred stock is at 11.87%, and the cost of equity is at 17.21%. 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? - 1% (Round to two decimal places.) Data Table $0 $56,000 Click on the Icone in order to copy its content into a spreadsheet. DMI Balance Sheet ($ in thousands) Current assets $31,020 Current liabilities Long-term assets $63,980 Long-term liabilities Bonds payable Owners' equity Preferred stock Common stock Total liabilities and Total assets $95,000 owners' equity $14,000 $25,000 $95,000 Click on the Icon in order to copy its content into a spreadsheet. Market Information Debt Outstanding Market Price 56,000 $971.37 Preferred Stock 140,000 $107.83 Common Stock 1,000,000 $37.87