General Motors has the following Balance Sheet position at the end of the Year 2018: (See Attachment) The Company has also calculated its cost of different sources of capital such as Long-term debt has an after-tax cost of 8%; while common stock equity has a cost of 19%. A) Given this after-tax cost of each source of capital, what is the weighted average cost of capital using book weights for General Motors? (3 marks) B) Given this after-tax cost of each source of capital, what is the weighted average cost of capital using market value weights for General Motors when the market value of long-term debt is $980 per bond and market price per share of common stock is $50?

Balance Sheet General Motors December 31, 2018
Assets
Current Assets
Cash	$25,000
Accounts Receivable	120,000
Inventories	300,000
Total Current Assets	$445,000
Net Fixed Assets	$500,000
Total Assets	$945,000
Liabilities and Stockholders Equity
Current Liabilities
Accounts Payable	$80,000
Notes Payable	350,000
Accruals	50,000
Total Current Liabilities	$480,000
Long-Term Debts(150 bonds issued at $1,000 par)	150,000
Total Liabilities	$630,000
Stockholders Equity Common Stock (7,200 shares outstanding)	$180,000
Retained Earnings	135,000
Total Stockholders Equity	$315,000
Total Liabilities and Stockholders Equity	$945,000