Timbuktu Corp Has a Market Value of Debt of $2

question 103

Multiple Choice

Timbuktu Corp has a market value of debt of $2.5 billion,and a market value of equity of $1.5 billion.What weights should Timbuktu use for debt and equity in calculating its WACC?

• A)0.375,0.625
• B)0.5,0.5
• C)0.4,0.6
• D)0.625,0.375
• E)0.6,0.4

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Definitions:

Decibels

A unit of measurement for the intensity of sound, representing the ratio of a sound pressure level to a reference level.

Hearing Loss

A complete or partial loss of the ability to perceive sound in either one or both ears.

Antipyretic

A type of medication used to reduce or prevent fever by lowering the body temperature.

Meniere's Disease

A disorder of the inner ear that can lead to dizzy spells (vertigo) and hearing loss.