The president and CRO Spellman Transportation are having a disagreement about whether to use market value or book value weights in calculating the WACC Spellman's balance sheet shows totul of nonclate 5 million tong bom delt with a coupon rate of 7.00 and a vield to maturity of 6.00%. This debt currently has a market value of $50 million. The company has 10 million shares of common stock and the book value of the common equity common stock plus retained earnings) is 365 milion. The current stock price is 122.50 per share stockholder required return, 14.00; and the firm's tax rate is 255. The thinks the WACC should be based on market value weights, but the president thinks book welghts are more appropriate. What is the difference between the twowa Ca. 1.750 Ch. 1.99 Oc.2.16 Cd. 1.424 Save & Continue Continue without saving