The total market value of General Motors (GM) is $10 billion.GM has a market value of $7 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 the WACC?
A) 0.6,0.4
B) 0.7,0.3
C) 0.3,0.7
D) cannot be determined
Correct Answer:
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