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 10.2% for both companies and the cost of equity is 14.87%, which company has the higher WACC?

Trout, Inc.- Current assets: $3,333,333 Current liabilities: $1,395,865 Long-term assets: $11,666,667 Long-term liabilities: $9,255,851 Total assets: $15,000,000 Owners' equity: $4,352,284

Salmon Enterprises- Bonds outstanding: 3,000 selling at $1,099.49

Common stock outstanding: 260,000 selling at $31.74