Asterix Corp Has Debt with a Book Value of $20

Multiple Choice

Asterix Corp has debt with a book value of $20 million,currently trading at 85% of book value.It also has book value of equity of $30 million,and 2 million shares of common stock trading at $4.75 per share.What weights should Asterix use for debt and equity in calculating its WACC?

A) 0.64,0.36
B) 0.4,0.6
C) 0.68,0.32
D) 0.5,0.5
E) 0.6,0.4