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A Company Has a Market Value of $8 Billion of Equity

question 65

Multiple Choice

A company has a market value of $8 billion of equity and a market value of $12 billion of debt. What are the weights in equity and debt that are used for calculating the WACC?


Definitions:

Accrued Interest

Interest that's been accrued but is still pending payment or receipt.

Deposit

A sum of money placed in an account or with a third party as security or for future payment.

Days

Units of time measuring 24 hours, often used to calculate interest, maturity dates, and other financial time periods.

Interest Earned

The amount of money gained as profit from an investment over a certain period of time.

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