Assume the total market value of General Motors (GM) 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, 0.70
B) 0.60, 0.40
C) 0.40, 0.60
D) cannot be determined
Answer: B
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What will be an ideal response?
As restructuring occurs in office systems and training needs are recognized at all employee levels, the administrative manager's job will continue to evolve
Indicate whether the statement is true or false
Trent sells his personal residence to Chester on July 1, 2017 . He had paid $7,000 in real property taxes on March 1, 2017, the due date for property taxes for 2017 . Trent may not deduct the portion of the taxes he paid for the period the property was owned by Chester
a. True b. False Indicate whether the statement is true or false
The current price of a stock is $50, the annual risk-free rate is 6%, and a 1-year call option with a strike price of $55 sells for $7.20 . What is the value of a put option, assuming the same strike price and expiration date as for the call option?
a. $7.33 b. $7.71 c. $8.12 d. $8.55 e. $9.00