Book value versus market value components. Compare Trout, Inc. with Salmon Enterprises, using the balance...
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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 10.9% for both companies and the cost of equity is 16.09%, which company has the higher WACC? BE SURE TO USE ALL OF THE DIGITS (NOT ROUNDED VALUES) WHEN COMPUTING THE CAPITAL STRUCTURE WEIGHTS! What is the book value adjusted WACC for Trout, Inc.? Data table % (Round to two decimal places.) What is the market value adjusted WACC for Salmon Enterprises? in order to copy its content into a spreadsheet. Trout, Inc. % (Round to two decimal places.) Which company has the higher WACC? (Select the best response.) Current assets: Long-term assets: Total assets: $3,111,111 $10,888,889 $14,000,000 Current liabilities: $1,968,900 Long-term liabilities: Owners' equity: $8,171,592 $3,859,508 A. Salmon Enterprises has a higher WACC at 14.52% than Trout, Inc. with a WACC of 12.56%. Salmon Enterprises B. Trout, Inc. has a higher WACC at 14.52% than Salmon Enterprises with a WACC of 12.56%. Bonds outstanding: 3,000 selling at $1,053.04 Common stock outstanding: 260,000 selling at $27.94 Print Done Click on the Icon X
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