A Company Has a Market Value of $8 Billion of Equity

question 40

Multiple Choice

A company has a market value of $8 billion of equity and a market value of $12 billion of debt. What are the weights in equity and debt that are used for calculating the WACC?

• A)0.6, 0.4
• B)0.4, 0.6
• C)0.8, 0.2
• D)0.5, 0.5

---

Definitions:

Donor Portraits

Donor portraits are artworks, particularly seen in medieval and Renaissance art, depicting individuals who commissioned or donated the artwork as a way of displaying piety and patronage, often integrated into religious scenes.

Disguised Patronage

A concept in art where the sponsor of the artwork is included within the piece, often cleverly integrated into the scene.

Triptych

A three-paneled painting, ivory plaque, or altarpiece. Also, a small, portable shrine with hinged wings used for private devotion.

Diptych

A two-paneled painting or altarpiece; also, an ancient Roman, Early Christian, or Byzantine hinged writing tablet, often of ivory and carved on the external sides.