General Accounting GM has a market value of $12 billion of equity and a marketvalue of $8 billion of debt. What are the weights in equityand 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.

To calculate the weights in equity and debt for the Weighted Average Cost of Capital (WACC), we use…

Answered: GM has a market value of $12 billion of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Aa 145.
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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.