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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