book value?

market value?

which one is better?

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 13.05%, and the cost of equity is at 16.09%. 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 DMI? % (Round to two decimal places.) DMI Balance Sheet ($ in thousands) Current assets $34,612 $71,388 Current liabilities $0 Long-term assets Long-term liabilities Bonds payable Owners' equity $65,000 Preferred stock Common stock Total liabilities and $15,000 $26,000 Total assets $106,000 owners' equity $106,000 Market Information Debt 65,000 $994.26 Preferred Stock 150,000 $97.68 Common Stock Outstanding Market Price 1,040,000 $34.34 Enter your answer in the answer box and then c parts remaining Print Done