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

question 126

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%.
• E)none of the above.

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Definitions:

Calmative

An agent or approach that has a calming effect, reducing excitement or anxiety.

Designer Drugs

Synthetic substances created to mimic the effects of illegal drugs, often with modified chemical structures to evade law enforcement detection.

Physical Dependence

A physiological state where the body adapts to a substance, leading to withdrawal symptoms when that substance is reduced or stopped.

Withdrawal Symptoms

The unpleasant physical or psychological reactions that occur after ceasing or reducing intake of a substance that the body has become dependent on.