Question: Help on questions 1, 2 and 3 Book value versus market value components. Compare Trout, Inc. with Salmon Enterprises, using the balance sheet of Trout
Help on questions 1, 2 and 3

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: B . If the after-tax cost of debt is 7.4% for both companies and the cost of equity is 12.89%, which company has the higher WACC? What is the book value adjusted WACC for Trout, Inc.? X Data table % (Round to two decimal places.) 4 Click on the Icon D in order to copy its content into a spreadsheet. Trout, Inc. Current assets: $2,000,000 Current liabilities: $846,700 Long-term assets: $7,000,000 Long-term liabilities: $5,468,480 Total assets $9,000.000 Owners' equity: $2,684,820 Salmon Enterprises Bonds outstanding: 3,000 selling at $1,097.23 Common stock outstanding: 260,000 selling at $31.42 Print Done
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