What Is Ningbo Shipping's WACC If It's After Tax Cost

question 24

Multiple Choice

What is Ningbo Shipping's WACC if it's after tax cost of debt is 3.5%, it's cost of retained earnings is 14%, and the firm's market value of debt is $40 million while the market value of its equity is $60 million?

• A) 9.8%.
• B) 3.5%.
• C) 11.8%.
• D) 14.7%.

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Definitions:

Freud

Freud, a neurologist from Austria, developed the psychoanalytic method, which involves treating mental illnesses through dialogue between an analyst and the person seeking help.

Anal Stage

In Freudian psychology, the second stage of psychosexual development, occurring between about 18 months and three years of age, during which children find pleasure in controlling bowel movements.

Religion

A set of beliefs concerning the cause, nature, and purpose of the universe, often involving ritual observances and a moral code governing the conduct of human affairs.

Neo-Freudian

Pertains to theorists who were influenced by Sigmund Freud but adapted his ideas, focusing more on social and cultural factors.