If the Large Magellanic Cloud Is Orbiting the Milky Way

question 88

Multiple Choice

If the Large Magellanic Cloud is orbiting the Milky Way in a circular orbit with a speed of 175 km/s and a distance of 50 kpc from the center, how long would it take for the Large Magellanic Cloud to complete one orbit around the Milky Way?

• A) 500 million years
• B) 2 billion years
• C) 5 billion years
• D) 9 billion years
• E) 12 billion years

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Definitions:

Financing Costs

Financing Costs encompass expenses associated with raising capital to finance a company's operations or to fund expansion, including interest payments on debt and costs related to issuing equity.

Interest Expense

The cost incurred by an entity for borrowed funds, typically reflected as a line item in the income statement.

WACC

WACC, or Weighted Average Cost of Capital, represents a firm's cost of capital in which each category of capital is proportionately weighted.

Incremental Cash Flows

The additional cash flow a company receives from taking on a new project, crucial for analyzing the profitability of the project.