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 13.12%, and the cost of equity is at 16.27% Calculate Which do you think is better? the WACC using both the book value and the market value approaches with the information in the popup window: DMI Balance Sheet ($ in thousands) $32,327 $0 Current assets Current liabilities Long-term liabilities Bonds payable Long-term assets $66,673 $59,000 Owners' equity $14,000 Preferred stock Common stock $26,000 Total liabilities and Total assets $99,000 $99,000 owners' equity ick on the Icon in order to copy its content into a spreadsheet Market Information Debt Preferred Stock Common Stock Outstanding 59,000 140,000 1,040,000 $1,029.71 $108.04 Market Price $36.34