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Book value versus market value components. The CFO of DMI is trying to determine the companys 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 determine the companys WACC. Brad, a promising MBA, says that the company should use book value to as:-gin the WACC components' percontages. Angela, a long-tme employee and experienced fnancial analyst, says that the company should use market value to assign the corrponents' percentages. The after-tax cost of cebt is at 7.2%, the cost of preferred stock is at 10.59%, and the cost of equity is at 14.49%. Calculate the WacC using both the book value and the market value approuches weh the information in the popup window: Which do you think is better? What is the bock value adjusted WacC tor DMi? in. (Round to two decimal places) Click on the Icon b in order to copy its content into a spreadsheet

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