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) 1.8%.
B) 3.5%.
C) 11.8%.
D) 14.7%.
E) none of the above.
Correct Answer:
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