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What is the market value adjusted WACC for DMI? answer everything please Book value versus market value components. The CFO of DMI is trying to
What is the market value adjusted WACC for DMI?
answer everything please
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 8.5%, the cost of preferred stock is at 11.56%, and the cost of equity is at 15.84%. Calculate the WACC using both the book value and the market value approaches with the information in the popup window. 2. Which do you think is better? What is the book value adjusted WACC for DMI? % (Round to two decimal places.) Book value versus market value components. The long-time employee and experienced financial analyst, is at 15.84%. Calculate the WACC using both the book sign the WACC components' percentages. Angela, a - X t of preferred stock is at 11.56%, and the cost of equity , Data table What is the book value adjusted WACC for DMI? % (Round to two decimal places.) Click on the icon in order to copy its content into a spreadsheet. DMI Balance Sheet ($ in thousands) Current assets $33,306 Current liabilities Long term assets Long-term liabilities Bonds payable SO $68,694 $64.000 Owners' equity $14,000 $24,000 Preferred stock Common stock Total liabilities and owners' equity Total assets $102,000 $102,000 Click on the icon in order to copy its content into a sprcadshocl. Market Information Debt Preferred Stock Outstanding 64,000 140,000 Market Price S927.54 $98.83 Common Stock 960,000 $34.86 O Print Done
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