GM Has a Book Value of $8 Billion of Equity

question 88

Multiple Choice

GM has a book value of $8 billion of equity and a face value of $12 billion of debt.What are the weights in debt and equity that are used for calculating the WACC?

• A)0.4,0.6
• B)0.6,0.4
• C)0.5,0.5
• D)cannot be determined

Understand the concepts of prejudice and discrimination and their differences.

Recognize the role of leadership styles and theories in organizational effectiveness.

Identify factors influencing attitudes, including the formation and change of attitudes.

Distinguish between various psychological theories related to conformity, compliance, and obedience.

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Definitions:

Profit

The earnings obtained when the income generated from business operations is higher than the expenses, costs, and taxes required for these operations.

Output Market

Marketplaces where finished goods or services are sold to consumers, as opposed to input markets where raw materials are bought.

Consumers

Individuals or entities that purchase goods or services for personal use, not for manufacture or resale.

Firms

Business entities that produce goods or provide services with the aim of making a profit.