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:If the after-tax cost of debt is 7.3% for both companies and the cost of equity is 13.59%, which company has the higher WACC? What is the book adjusted WACC of both companies?

Trout, Inc. Current assets: $1,333,333 Current liabilities: $780,712 Long-term assets: $4,666,667 Long-term liabilities: $3,325,337 Total assets: $6,000,000 Owners' equity: $1,893,951

Salmon Enterprises Bonds outstanding: 3,000 selling at $963.87. Common stock outstanding: 260,000 selling at $22.91