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 9.8%, the cost of preferred stock is at 12.85%, and the cost of equity is at 16.01% 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.) Enter your in the answer box and then click Check Answer. parts remaining Clear All Check Answer Click on the Icon $0 Current assets Long-term assets $61,000 in order to copy its content into a spreadsheet. DMI Balance Sheet ($ in thousands) $31,347 Current liabilities $64,653 Long-term liabilities Bonds payable Owners' equity Preferred stock Common stock Total liabilities and $96,000 owners' equity $12,000 $23,000 Total assets $96,000 Click on the Icon in order to copy its content into a spreadsheet. Market Information Debt Preferred Stock Outstanding 61,000 120,000 Market Price $967.63 $98.01 Common Stock 920,000 $35.11