nt The market value of Fords' equity, preferred stock, and debt are 56 billion, $1 billion, and $14 billion, respectivel
Posted: Sun Jul 03, 2022 12:54 pm
nt The market value of Fords' equity, preferred stock, and debt are 56 billion, $1 billion, and $14 billion, respectively. Ford has a beta of 1.2, the market risk premium is 8%, and the risk-free rate of interest is 5%. Ford's preferred stock pays a dividend of $3 each year and trades at a price of $25 per share. Ford's debt trades with a yield to maturity of 7.5%. What is Ford's weighted average cost of capital if its tax rate is 30 %? OA. 9.07% OB. 9.89% OC. 8.66% OD. 8.24% Com