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Book value versus 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 components percentages. Angela, a long-time employee and experienced financial analyst, says that the company should use market value to assign the components' percentages. The after-tax cost of debt is at 9.2%, the cost of preferred stock is at 13.02%, and the cost of equity is at 17.54%. Calculate the WACC using both the book value and the market value approaches with the information in the popup Window. E. Which do you think is better? What is the book value adjusted WACC for DMI? % (Round to two decimal places.) - X Data table $0 $58,000 Click on the icon in order to copy its content into a spreadsheet. DMI Balance Sheet($ in thousands) Current assets $30.041 Current liabilities Long-term assets $61,959 Long-term liabilities Bonds payable Owners' equity Preferred stock Common stock Total liabilities and Total assets $92,000 owners' equity $13,000 $21,000 592,000 Click on the icone in order to copy its content into a spreadsheet. Market Information Debt Preferred Stock Outstanding 58,000 130,000 Market Price $989.33 $110.27 Common Stock 840.000 $34.81 Print Done

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