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 9.7%, the cost of preferred stock is at 13.67%, and the cost of equity is at 17.34%. Calculate the WACC using both the book value and the market value approaches with the information in the popup window: 3. Which do you think is better? What is the book value adjusted WACC for DMI? % (Round to two decimal places.) Data Table $0 Click on the Icon in order to copy its content into a spreadsheet. DMI Balance Sheet ($ in thousands) Current assets $33,959 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 $63,000 $15,000 $26,000 $104,000 Click on the Icon in order to copy its content into a spreadsheet. Market Information Outstanding Market Price Debt 63,000 $960.35 Preferred Stock 150,000 $105.08 Common Stock 1,040,000 $38.35 Print Done 2 parts remaining Clear All Check