Calculate the fords weighted average cost of capital, Finance Basics

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Calculate the fords weighted average cost of capital

The market value of Fords' equity, preferred stock and debt are $7 billion, $3 billion, and $10 billion, respectively. Ford has a beta of 1.8, the market risk premium is 7%, and the risk-free rate of interest is 4%. Ford's preferred stock pays a dividend of $3.5 each year and trades at a price of $27 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 30%?

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Finance Basics: Calculate the fords weighted average cost of capital

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Finance Basics: Calculate the fords weighted average cost of capital

Reference No:- TGS0729695

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Recent Questions Asked Finance Basics

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Q : Calculate the fords weighted average cost of capital

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Calculate the fords weighted average cost of capital

Reference No:- TGS0729695

Recent Questions Asked Finance Basics

Q : What is at and t average wage or salary paid

Q : What is the net present value of this lockbox arrangement

Q : What is the value per share using the stable growth model

Q : What would the growth rate in dividends have

Q : Calculate the fords weighted average cost of capital

Q : Calculate how much money will you invest in stock x

Q : What is the rate of return on the fund

Q : What are the depreciation expenses associated with machine

Q : Calculate the best-case and worst-case npv

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