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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