Tesla Inc. has a market value of $720 billion of equity and a market value of $180 billion of debt. What are the weights in equity and debt that are used for calculating the WACC? A. 0.75, 0.25 B. 0.80, 0.20 C. 0.25, 0.75 D. 0.20, 0.80

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
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Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
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Tesla Inc. has a market value of $720 billion of equity and a market value
of $180 billion of debt. What are the weights in equity and debt that are
used for calculating the WACC?
A. 0.75, 0.25
B. 0.80, 0.20
C. 0.25, 0.75
D. 0.20, 0.80
Transcribed Image Text:Tesla Inc. has a market value of $720 billion of equity and a market value of $180 billion of debt. What are the weights in equity and debt that are used for calculating the WACC? A. 0.75, 0.25 B. 0.80, 0.20 C. 0.25, 0.75 D. 0.20, 0.80
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