23. Assume the total market value of General Motors (GM)'s capital structure is $10 billion GM has a market value of $6 billion of equity and a face value of $12 billion of debt. What are the weights in equity and debt that are used for calculating the WACC? 20.30 equity, 0.70 debt b. 0.60 equity, 0.40 debt c. 0.40 equity, 0.60 debt d. Cannot be determined 24. Yesterday, a stock you owned paid a dividend of $1.30. You know that its cost of cquity is 13% You expect the stock's dividend to grow by 12% next year when it is paid again What is the stock's price? a. $145.60 b. $100.00 c. $130.00 d. $13.00 25. A firm has a capital structure with $75 million in equity and $75 million of debt. The cost of equity capital is 10% and the pretax cost of debt is 7%. If the marginal tax rate of the firm is 35%, compute the weighted average cost of capital of the firm. a. 7.3% b. 7.6% c. 8.0% d. 8.4% 26. Which of the following would you NOT consider when making a capital budgeting decision? a. the additional taxes a fim would have to pay in the next year b. the cost of a marketing study completed last year c the opportunity to lease out a warchouse instead of using it to house a new production line d. the change in direct labor expense due to the purchase of a new machine