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 10.8%, the cost of preferred stock is at 14.57%, and the cost of equity is at 19.11%. 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? x Data Table $0 $51,000 Click on the Icon in order to copy its content into a spreadsheet. DMI Balance Sheet($ in thousands) Current assets $29,714 Current liabilities Long-term assets $61,286 Long-term liabilities Bonds payable Owners' equity Preferred stock Common stock Total liabilities and Total assets $91,000 owners' equity $11,000 $29,000 $91,000 Click on the Icon in order to copy its content into a spreadsheet. Market Information Debt Preferred Stock Outstanding 51,000 110,000 Market Price $1,042.51 $102.67 Common Stock 1,160.000 $33.47 Print Done