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 7.5% for both companies and the cost of equity is 12.74%, which company has the higher WACC? Part 1 What is the book value adjusted WACC for Trout, Inc.?

Current assets 2,444,444 Long-term assets 8,555,556 Total assets 11,000,000 Current liabilities 985,640 Long-term liabilities 6,949,817 Owners' equity 3,064,543

Trout, Inc.
Current assets:	$2,444,444	Current liabilities:	$985,640
Long-term assets:	$8,555,556	Long-term liabilities:	$6,949,817
Total assets:	$11,000,000	Owners' equity:	$3,064,543
Salmon Enterprises
Bonds outstanding: 3,000 selling at $929.02
Common stock outstanding: 260,000 selling at $23.94