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Book value versus market value components: Compare​ Trout, Inc. with Salmon​ Enterprises, using the balance sheet...

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 8.2% for both companies and the cost of equity is 14.55%, which company has the higher​ WACC?

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

What is the book value adjusted WACC for​ Salmon Enterprises?

Trout Inc:

Current assets   2,666,667
Long-term assets   9,333,333
Total assets   12,000,000
Current liabilities   1,843,676
Long-term liabilities   6,920,363
Owners' equity   3,235,961

Salmon Enterprises:

Bonds Outstanding: 3,000 selling at $1,021.35

Common Stock Outstanding: 260,000 selling at $36.77

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