Business, 18.12.2019 07:31, sanchitcoolcham4410

Assume the market value of fords' equity, preferred stock and debt are $6 billion, $3 billion, and $13 billion, respectively. ford has a beta of 1.7, the market risk premium is 8%, and the risk-free rate of interest is 3%. ford's preferred stock pays a dividend of $2.50 each year and trades at a price of $30 per share. ford's debt trades with a yield to maturity of 9.5 %. what is ford's weighted average cost of capital if its tax rate is 35%?
a) 9.31%
b) 11.18%
c) 10.24%
d) 9.78 %

Answers: 2

Show answers

Other questions on the subject: Business

Business, 21.06.2019 20:30, maya8909

Which organization was established to train the hard-core unemployed? - better business bureau- equal employment opportunity commission- environmental protection agency- affirmative action committee- national alliance of business

Answers: 1

continue

Business, 22.06.2019 13:10, princessgabbee8452

Paid-in-capital in excess of par represents the amount of proceeds a. from the original sale of common stock b. in excess of the par value from the original sale of common stock c. at the current market value of the common stock d. at the curent book value of the common stock

Answers: 1

continue

Business, 22.06.2019 14:00, bosskid361

Which of the following is not a characteristic of a weak economy? a. a low employment rateb. a high inflation ratec. a decreased gdpd. a high unemployment rate

Answers: 1

continue

Business, 22.06.2019 17:20, sctenk6052

“strategy, plans, and budgets are unrelated to one another.” do you agree? explain. explain how the manager’s choice of the type of responsibility center (cost, revenue, profit, or investment) affects the behavior of other employees.

Answers: 3

continue

Do you know the correct answer?

Assume the market value of fords' equity, preferred stock and debt are $6 billion, $3 billion, and $...