Question: Book value versus market value components . CompareTrout, Inc. with SalmonEnterprises, using the balance sheet of Trout and the market data of Salmon for the

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:  LOADING...

. If the​ after-tax cost of debt is8.5​% for both companies and the cost of equity is13.82​%, which company has the higher​ WACC?

What is the book value adjusted WACC for​ Trout, Inc.?


Current assets 1,111,111 

Long-term assets 3,888,889

Total assets 5,000,000

Current liabilities 644,751

Long-term liabilities 2,830,296

Owners' equity 1,524,953


Salmon Enterprises

Bonds​ outstanding: 


3,000 selling at ​$925.45



Common stock​ outstanding:  


260,000 selling at ​$23.97

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