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Business, 18.05.2021 18:40 mattr4960

The market value of Fords' equity, preferred stock, and debt are $6 billion, $2 billion, and $15 billion, respectively. Ford has a beta of 1.5, the market risk premium is 7%, and the risk-free rate of interest is 4%. Ford's preferred stock pays a dividend of $3each year and trades at a price of $27 per share. Ford's debt trades with a yield to maturity of 8.5%. 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 $6 billion, $2 billion, and $15 bil...
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