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dusya [7]
3 years ago
9

The total asset market value of General Motors (GM) is $10 billion. GM has an equity market value (market capitalization) of $7

billion of equity. What are the weights in equity and debt that are used for calculating the WACC, respectively
Business
1 answer:
sesenic [268]3 years ago
5 0

Answer:

0.70,0.30

Explanation:

Calculation for the weights in equity and debt that are used for calculating the WACC respectively

Calculation for weights in equity

Weights in equity= $7 million / $10 million

Weights in equity = 0.70

Therefore the Weights in equity will be 0.70

Calculation for debt

Debt = ($10 million - $7 million) / $10 million

Debt=$3millon/$10 million

Debt= 0.30

Therefore the debt that are used for calculating the WACC will be 0.30

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Answer:

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Explanation:

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6 0
4 years ago
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Answer and Explanation:

The preparation of the bank reconciliation statement is presented below:

                                            Organic Food Co.

                                 Bank reconciliation statement  

Particulars                Amount              Particulars                   Amount  

Bank cash balance   $5,860           Company cash balance $6,500

Add: Deposits                                       Less: NSF check         -$220

in transit                     $2,240               Less: service fee          $120

Add: Correction        $180

Less: Outstanding                                  

Check -                       -$2,120

Bank balance                                        Company balance

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Answer:

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