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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

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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 that the company should use market value to assign the componente percentages. The after-tax cost of debt is at 7.3%, the cost of preferred stock is at 10.37%, and the cost of equity is popup window. Which do you think is better? Data Table $0 Click on the leon in order to copy is content into a spreadsheet DMI Balance Sheet($ in thousands) Current Assos $32,980 Current linbildes Long-term assets 563.020 Long-term Habilities Bonds payable Owners' equity Preferred stock Common stock Total liabilities and Total assets $101,000 owners' equity $50,000 $13.000 $29,000 $100,000 Click on the icon in order to copy is content into a spreadsheet Market Information Debt Preferred Stock Outstanding 50,000 130,000 Market Price $1,027.12 395.69 Common Stock 1.160,000 $33.89 Question Help he company should use book value to assign the WACC components' percentages. Angela, a long-time employee and experienced financial analyst, says s at 10.37%, and the cost of equity is at 15.35%. Calculate the WACC using both the book value and the market value approaches with the information in the

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