4. Book value versus market value components. Compare Trout Inc. with Salmon Enterprises using the balance sheet of Trout and the market data of Salmon for the weights in the weighted average cost of capital. Trout Inc. Current Liabilities: Long-Term Liabilities: Owner's Equity: Current Assets: Long-term Assets: Total Assets $2,000,000 $7,000,000 $9,000,000 Salmon Enterprises $1,000,000 $5,000,000 $3,000,000 Bonds Outstanding 3,000 selling at $980 Common Stock Outstanding 260,000 selling at $23.40 If the after-tax cost of debt is 8% for both companies and the cost of equity is 12% which company has the highest WACC?

4. Book value versus market value components. Compare Trout Inc. with Salmon Enterprises using the balance sheet of Trout and the market data of Salmon for the weights in the weighted average cost of capital. Bonds Outstanding 3,000 selling at $980 Common Stock Outstanding 260,000 selling at $23.40 If the after-tax cost of debt is 8% for both companies and the cost of equity is 12% which company has the highest WACC