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Assume Basil Corp has a book value of $3 billion of equity, and 1 billion shares trading at $4 per share. The firm has debt
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Assume Basil Corp has a book value of $3 billion of equity, and 1 billion shares trading at $4 per share. The firm has debt with a book value of $18 billion, trading at %110 of par value. What are the weights in equity and debt for calculating the WACC?
A. 0.832, 0.168
B. 0.168, 0.832
C. 0.90, 0.1
D. 0.14, 0.86
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