Book value vernus market value components. The CFO of DMI is trying to determine the...
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Book value vernus market value components. The CFO of DMI is trying to determine the company's WACC Brad, a promising MBA, says that the company should use book value to assign the WACC component percentages Angela, a long-sime employee and experienced financial analyst, says that the company should use market value to assign the compotents percentages. The attor tax cost of debt is at 9.7%, the cost of pred stock is at 14 46%, and the cost of equity is at 17 57% Calculate the WACC using both the book value and the market value approaches with the information in the popup window Which do you think is bor? - X Data table What is the book vaske adjusted WACC x DMI? Click on the loont in order to copy its content into a spreadsheet (Round to taro decimal places) DMI Balance Sheet ($ in thousands) $33.306 Current Sto $1 Cuments Long term asses $60404 Long term liabiles Bon payable $43,000 Owners ty 613.000 Preferred stock Common stack $26.000 Total liabilises and 5102006 Total assets $102.000 owners equity Click on the connoder toy content into a de Market Information Piste Stock Phot 63.000 130 000 Outstanding Market Price $1.050 49 $106 74 Con 1.040.000 337 12 Book value vernus market value components. The CFO of DMI is trying to determine the company's WACC Brad, a promising MBA, says that the company should use book value to assign the WACC component percentages Angela, a long-sime employee and experienced financial analyst, says that the company should use market value to assign the compotents percentages. The attor tax cost of debt is at 9.7%, the cost of pred stock is at 14 46%, and the cost of equity is at 17 57% Calculate the WACC using both the book value and the market value approaches with the information in the popup window Which do you think is bor? - X Data table What is the book vaske adjusted WACC x DMI? Click on the loont in order to copy its content into a spreadsheet (Round to taro decimal places) DMI Balance Sheet ($ in thousands) $33.306 Current Sto $1 Cuments Long term asses $60404 Long term liabiles Bon payable $43,000 Owners ty 613.000 Preferred stock Common stack $26.000 Total liabilises and 5102006 Total assets $102.000 owners equity Click on the connoder toy content into a de Market Information Piste Stock Phot 63.000 130 000 Outstanding Market Price $1.050 49 $106 74 Con 1.040.000 337 12
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