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1 . Ford Motor Company desires to finance all projects with funds raised according to their target capital structure of 6 0 % debt, 1
Ford Motor Company desires to finance all projects with funds raised according to their target capital structure of debt, preferred stock, and common stock. Ford can issue debt at an aftertax cost of indefinitely, the cost of preferred stock is Ford has $ of retained earnings at a cost of and can issue new common stock at a cost of a What is the breakpoint for Ford Motor's where their cheapest source of funds is exhausted? b What is Ford Motor's first weighted average cost of capital where the cheapest sources of funds are used What is Ford Motor's second weighted average cost of capital after the cheapest sources of funds are exhausted
Ford Motor Company desires to finance all projects with funds raised according to their target capital structure of debt, preferred stock, and common stock. Ford can issue debt at an aftertax cost of indefinitely, the cost of preferred stock is Ford has $ of retained earnings at a cost of and can issue new common stock at a cost of
a What is the breakpoint for Ford Motor's where their cheapest source of funds is exhausted? points
b What is Ford Motor's first weighted average cost of capital where the cheapest sources of funds are used points
c What is Ford Motor's second weighted average cost of capital after the cheapest sources of funds are exhausted
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