Business, 17.05.2020 03:57 TheViperMlg23676

The market value of Fords' equity, preferred stock, and debt are $ 7 billion, $ 2 billion, and $ 13 billion, respectively. Ford has a beta of 1.6, the market risk premium is 8%, and the risk-free rate of interest is 3%. Ford's preferred stock pays a dividend of $ 2 each year and trades at a price of $ 26 per share. Ford's debt trades with a yield to maturity of 8%. What is Ford's weighted average cost of capital if its tax rate is 30%?

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The market value of Fords' equity, preferred stock, and debt are $ 7 billion, $ 2 billion, and $ 13...

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