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 11.4%, the cost of preferred stock is at 15.31%, and the cost of equity is at 18.71%. 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?

Current assets 33,633 Current liabilities 0 Long-term assets 69,367 Long-term liabilities Bonds payable 58,000 Owners' equity Preferred stock 14,000 Common stock 31,000 Total assets 103,000 Total liabilities and owners' equity 103,000

Debt Preferred Stock Common Stock Outstanding 58,000 140,000 1,240,000 Market Price 1,008.59 109.81 37.14

What is the book value adjusted WACC for DMI?