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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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