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Book value versus market value components.Compare? Trout, Inc. with Salmon? Enterprises, using the balancesheet of Trout and the market data of Salmon for the weights in theweighted average cost of? capital:??If the? after-tax cost of debtis 7.3?% for both companies and the cost of equity is 13.59?%,which company has the higher? WACC? What is the book adjusted WACCof both companies?Trout, Inc. Current assets: $1,333,333 Current liabilities:$780,712 Long-term assets: $4,666,667 Long-term liabilities:$3,325,337 Total assets: $6,000,000 Owners' equity: $1,893,951Salmon Enterprises Bonds outstanding: 3,000 selling at $963.87.Common stock outstanding: 260,000 selling at $22.91
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