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The total market value of General Motors(GM) is$10 billion. GM has a market value of $4 billion of equity and a face value of $10

The total market value of General Motors(GM) is$10 billion. GM has a market value of $4 billion of equity and a face value of $10 billion of debt. What are the weights in equity and debt that are used for calculating theWACC?

A.

0.4, 0.6

B.

0.2, 0.8

C.

0.6, 0.4

D.

cannot be determined

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