What is Ningbo Shippings WACC if its after tax cost of debt is 3.5%, its...

80.2K

Verified Solution

Question

Accounting

What is Ningbo Shippings WACC if its after tax cost of debt is 3.5%, its cost of retained earnings is 14%, and the firms 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%.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students