ANSWER THESE QUESTIONS: What is the book value adjusted WACC for Trout, Inc.? What...

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ANSWER THESE QUESTIONS:

What is the book value adjusted WACC for Trout, Inc.?

What is the market value adjusted WACC for Salmon Enterprises?

Which company has the higher WACC?

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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 7.7% for both companies and the cost of equity is 1329%, which company has the higher W Data Table Trout, Inc. Current assets $1,111,111 Long-term assets: $3,888,889 Total assets Current liabilities$308,274 Long-term liabilities: $3,105,454 $5,000,000 equity:$1,586,272 Salmon Enterprises Bonds outstanding: 3,000 selling at $910.99 Common stock outstanding: 260,000 selling at $25.04 Print Done

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