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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 %

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