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 6.9%, the cost of preferred stock is at 10.03%, and the cost of equity is at 13.14%. Calculate the WACC using both the book value and the market value approaches with the information in the popup window: . Which do you think is better? i Data Table $0 $57,000 Click on the Icon in order to copy its content into a spreadsheet. DMI Balance Sheet ($ in thousands) Current assets $32,653 Current liabilities Long-term assets $67,347 Long-term liabilities Bonds payable Owners' equity Preferred stock Common stock Total liabilities and Total assets $100,000 owners' equity $14,000 $29,000 $100,000 Click on the Icon in order to copy its content into a spreadsheet. Market Information Debt Preferred Stock Outstanding 57,000 140,000 Market Price $992.26 $98.18 Common Stock 1,160,000 $32.91 1.188.2009 Print Done