GM has a market value of $12 billion of equity and a market value of $8 billion of debt. What are the weights in equity and debt that are used for calculating the WACC? A. 0.7, 0.3. B. 0.4, 0.6. C. 0.3, 0.7. D. 0.6, 0.4.

GM has a market value of $12 billion of equity and a market value of $8 billion of debt. What are the weights in equity and debt that are used for calculating the WACC? A. 0.7, 0.3. B. 0.4, 0.6. C. 0.3, 0.7. D. 0.6, 0.4.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter11: Determining The Cost Of Capital

Section: Chapter Questions

Problem 1Q: Define each of the following terms: Weighted average cost of capital, WACC; after-tax cost of debt,...

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Question

Gm has a market value of... Please provide answer this financial accounting question

GM has a market value of $12 billion of equity and a market
value of $8 billion of debt. What are the weights in equity
and debt that are used for calculating the WACC?
A. 0.7, 0.3.
B. 0.4, 0.6.
C. 0.3, 0.7.
D. 0.6, 0.4.

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