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Book value versus market value components. The CFO of DMI is trying to dotemine the company's WACC. Brad, a promising MBA, says that the company

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Book value versus market value components. The CFO of DMI is trying to dotemine the company's WACC. Brad, a promising MBA, says that the company should use book value to assign the WACC components' percentrges. Angola, a long-time employee and experienced financial analyst, says that the company should use market value to assign the components' percenteges. The after-tax cost of debt is at 6.9%, the cost of preforred stook is at 10.79%, and the cost of equity is at 15.54%. Celoulate the WACC using both the book value and the market value approaches with the information in the popup window: Which do you think is belter? What is the book value adlusted WACC for DMi? (Fround to two decimal phaces.) Book value versus market value components. The CFO of DMI is trying to dotemine the company's WACC. Brad, a promising MBA, says that the company should use book value to assign the WACC components' percentrges. Angola, a long-time employee and experienced financial analyst, says that the company should use market value to assign the components' percenteges. The after-tax cost of debt is at 6.9%, the cost of preforred stook is at 10.79%, and the cost of equity is at 15.54%. Celoulate the WACC using both the book value and the market value approaches with the information in the popup window: Which do you think is belter? What is the book value adlusted WACC for DMi? (Fround to two decimal phaces.)

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