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 9.2%, the cost of preferred stock is at 13.66%, and the cost of equity is at 17.15%. 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? 11.73% (Round to two decimal places.) What is the market value adjusted WACC for DMI? 1% (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 $31,673 Current liabilities Long-term assets $65,327 Long-term liabilities Bonds payable Owners' equity Preferred stock $60,000 $14,000 $23,000 Common stock Total liabilities and owners' equity Total assets $97,000 $97,000 Click on the icon in order to copy its content into a spreadsheet. Market Information Debt Preferred Stock Common Stock Outstanding Market Price 60,000 $913.03 140,000 $106.07 920,000 $32.63