Asterix Corp Has Debt with a Book Value of $20

question 68

Multiple Choice

Asterix Corp has debt with a book value of $20 million,currently trading at 85% of book value.It also has book value of equity of $30 million,and 2 million shares of common stock trading at $4.75 per share.What weights should Asterix use for debt and equity in calculating its WACC?

• A)0.64,0.36
• B)0.4,0.6
• C)0.68,0.32
• D)0.5,0.5
• E)0.6,0.4

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Definitions:

Spinal Cord

A long, thin, tubular structure composed of nervous tissue that extends from the brainstem to the lower back, serving as the principal pathway for neural signals between the brain and the rest of the body.

Embryo

The early stage of development in multicellular organisms after fertilization, during which the organism undergoes rapid cell division and differentiation.

Endoderm

The Endoderm is the innermost layer of cells or tissue of an embryo in early development, which gives rise to the lining of the digestive and respiratory systems.

Ectoderm

The outermost layer of cells in the early embryo from which the nervous system, skin, and other external tissues develop.