The Cyclone Group operates in three sectors: the sale of commercial shipping equipment, shipping of goods by sea between mainland France and Reunion (the group owns two container ships) and a small shipyard which oversees the careenage of most of the boats in Reunion. The three divisions are listed on the Second Marche´ or on the Marche´ Libre of the Euronext Paris Stock Exchange.

1. What is your view of the financial health of this group (very simple financial analysis)?

2. The required return for a risk-free investment is around 6.5% (before tax) and the average required return for the market portfolio is 11% (before tax). Calculate the WACC?