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Assume Basil Corp has a book value of $3 billion of equity, and 1 billion...

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Finance

  1. Assume Basil Corp has a book value of $3 billion of equity, and 1 billion shares trading at $4 per share. The firm has debt with a book value of $18 billion, trading at %110 of par value. What are the weights in equity and debt for calculating the WACC?

    A.

    0.832, 0.168
    B.

    0.168, 0.832
    C.

    0.90, 0.1
    D.

    0.14, 0.86

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