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Trout and the market data of Salmon for the weights in the weighted average cost of capital: If the after-tax cos is 10.3% for both companies and the cost of equity is 14.38%, which company has the higher WACC? What is the book value adjusted WACC for Trout, Inc.? % (Round to two decimal places.) Data table -

Trout and the market data of Salmon for the weights in the weighted average cost of capital: If the after-tax cos is 10.3% for both companies and the cost of equity is 14.38%, which company has the higher WACC? What is the book value adjusted WACC for Trout, Inc.? % (Round to two decimal places.) Data table -

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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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 10.3% for both companies and the cost of equity is 14.38%, which company has the higher WACC? What is the book value adjusted WACC for Trout, Inc.? ☐ % (Round to two decimal places.) Data table Click on the Icon in order to copy its content into a spreadsheet. Trout, Inc. Current assets: $3,111,111 Current liabilities: $2,100,132 Long-term assets: $10,888,889 Long-term liabilities: $7,896,109 Total assets: $14,000,000 Owners' equity: $4,003,759 Salmon Enterprises Bonds outstanding: 3,000 selling at $922.23 Common stock outstanding: 260,000 selling at $24.26 Print Done - X
Transcribed Image Text: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 10.3% for both companies and the cost of equity is 14.38%, which company has the higher WACC? What is the book value adjusted WACC for Trout, Inc.? ☐ % (Round to two decimal places.) Data table Click on the Icon in order to copy its content into a spreadsheet. Trout, Inc. Current assets: $3,111,111 Current liabilities: $2,100,132 Long-term assets: $10,888,889 Long-term liabilities: $7,896,109 Total assets: $14,000,000 Owners' equity: $4,003,759 Salmon Enterprises Bonds outstanding: 3,000 selling at $922.23 Common stock outstanding: 260,000 selling at $24.26 Print Done - X
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