Calculate the weighted average cost of capital for Dell using book value weights and market value weights assuming Dell has 35 percent marginal tax rate.

To calculate the weighted average cost of capital (WACC) for Dell, we need to calculate the cost of each component of capital (equity and debt) and then apply the appropriate weights.

1. Cost of Debt:
The cost of debt represents the interest rate that Dell pays on its debt. To calculate this, we need to know Dell's yield to maturity (YTM) on its outstanding debt or the interest rate on its most recent debt issuance.

2. Cost of Equity:
The cost of equity represents the return expected by Dell's shareholders. There are several methods to estimate the cost of equity, such as the dividend discount model (DDM), the capital asset pricing model (CAPM), or the earnings-per-share (EPS) growth rate model.

3. Weighting:
Next, we need to determine the weights for the different components of capital. We can use either book value weights or market value weights.

Book value weights: Calculate the proportion of total capital represented by each component using the book value of equity and debt. The weights can be calculated as:

Weight of Debt = Book Value of Debt / (Book Value of Debt + Book Value of Equity)
Weight of Equity = Book Value of Equity / (Book Value of Debt + Book Value of Equity)

Market value weights: Calculate the proportion of total capital represented by each component using the market value of equity and debt. The weights can be calculated as:

Weight of Debt = Market Value of Debt / (Market Value of Debt + Market Value of Equity)
Weight of Equity = Market Value of Equity / (Market Value of Debt + Market Value of Equity)

4. Tax Rate:
The tax rate is required to calculate the after-tax cost of debt. In this case, Dell has a 35% marginal tax rate.

5. Calculate WACC:
After determining the cost of each component and the corresponding weights, we can calculate the WACC using the following formula:

WACC = (Cost of Debt * Weight of Debt) + (Cost of Equity * Weight of Equity)

Lastly, we can substitute the calculated values into the formula to obtain the final WACC for Dell.

Keep in mind that actual financial statements and market data are required to accurately calculate the WACC, so you may need to refer to Dell's financial reports or consult with financial professionals for the specific inputs.