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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

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?

A. 0.30 equity, 0.70 debt

B. 0.60 equity, 0.40 debt

C. 0.40 equity, 0.60 debt

D. Cannot be determined

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