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 11.5% for both companies and the cost of equity is 16.19%, which company has the higher WACC?

Trout, Inc.
Current assets:	$2,888,889	Current liabilities:	$2,044,606
Long-term assets:	$10,111,111	Long-term liabilities:	$7,565,292
Total assets:	$13,000,000	Owners' equity:	$3,390,102
Salmon Enterprises
Bonds outstanding: 3,000 selling at $973.12
Common stock outstanding: 260,000 selling at $33.33

1. Which company has the highest WACC?

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

3. What is the market value adjusted WACC for Salmon Ent?