Question: 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

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 welghts in the weighted average cost of capital: If the after-tax cost of debt is 9.8% for both companies and the cost of equity is 14.51%, which company has the higher WACC? What is the book value adjusted WACC for Trout, Inc.? % (Round to two decimal places.) What is the market value adjusted WACC for Salmon Enterprises ? 1% (Round to two decimal places.) Which company has the higher WACC? (Select the best response.) O A. Salmon Enterprises has a higher WACC at 13.39% than Trout, Inc. with a WACC of 11.30%. O B. Trout, Inc. has a higher WACC at 13.39% than Salmon Enterprises with a WACC of 11.30%. market value components. Compare Trout, Inc. with Salmon Enterprises, using the balance sheet of Trout an on for the weights in the weighted average cost of capital: If the after-tax cost of debt is 9.8% for both con tv is 14.51%, which company has the higher WACC? X i Data Table Click on the Icon in order to copy its content into a spreadsheet. Trout, Inc. Current assets: $2,888,889 Current liabilities: Long-term assets: $10,111,111 Long-term liabilities: Total assets: $13,000,000 Owners' equity: $1,456,290 $7,877,834 $3,665,876 Salmon Enterprises Bonds outstanding: 3,000 selling at $1,086.26 Common stock outstanding: 260,000 selling at $40.01 Print Done
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