mework Question 6, P11-12 (similar to) Part 1 of 3 HW Score: 22.22 %, 2 of 9 points O Points: 0 of 1 Save 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 8 7%, the cost of preferred stock is at 12.71%, and the cost of equity is at 17.03% 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 What is the book value adjusted WACC for DM? % (Round to two decimal places) Click on the icon in order to copy its content into a spreadsheet Current assets Long term assets Total assets DMI Balance Sheet ($ in thousands) $33,306 Current liabilities 50 508,604 Long term laboties Bonds payable $60,000 Owners' equity Preferred stock $15,000 Common stock $27,000 Total liabilities and $102,000 owners' equity $102,000 Click on the Icon in order to copy its content into a spreadsheet Market Information Outstanding Debt Market Price 60,000 $906.03 Preferred Stock 150,000 $10390 Common Stock 1,000,000 $3577