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 8.7%, the cost of preferred stock is at13.04%, and the cost of equity is at 18.43%. Calculate the WACC using both the book value and the market value approaches with the information in the popup window:

What is the book value adjusted WACC for DMI?

Data Table Current assets Long-term assets SO S64,000 DMI Balance Sheet ($ in thousands) $32,653 Current liabilities $67,347 Long-term liabilities Bonds payable Owners' equity Preferred stock Common stock Total liabilities and $100.000 owners' equity $13,000 $23.000 Total assets $100.000 Market Information Outstanding Market Price Dol 64.000 $932 33 Pilot SI 130.000 $98,53 920.000 $32.44 Print Done