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 11.3%, the cost of preferred stock is at 15.05%, and the cost of equity is at 20.52%. 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? What is the book value adjusted WACC for DMI? Data Table $33,959 $0 $58,000 Click on the Icon in order to copy its content into a spreadsheet. DMI Balance Sheet ($ in thousands) Current assets Current liabilities Long-term assets $70,041 Long-term liabilities Bonds payable Owners' equity Preferred stock Common stock Total liabilities and Total assets $104,000 owners' equity $15,000 $31,000 $104,000 ? Click on the Icon in order to copy its content into a spreadsheet. Market Information Debt Preferred Stock Outstanding 58,000 150,000 Market Price $940.11 $101.24 Common Stock 1,240,000 $37.61 Check