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 $7\mathrm{.}5\%,$ the cost of preferred stock is at $12\mathrm{.}15\%,$ and the cost of equity is at $16\mathrm{.}45\%.$ 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?

Data table

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What is the book value adjusted WACC for DMI?

$\%($Round to two decimal places.$)$

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Market Information

FIND:

Part $1$: WACC Book value

Part $2$: WACC Market Value