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

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