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3. Assume the market value of Fordd's common stock, preferred stock, and debt are $8 billion, $5 billion, and $10 billion, respectively. a. What is

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3. Assume the market value of Fordd's common stock, preferred stock, and debt are $8 billion, $5 billion, and $10 billion, respectively. a. What is the weight for each piece of capital Fordd has financed? b. Eordd's common equity has a beta of 1.5. Assume the market risk premium is 6%, and the risk-free rate of interest is 2%. What is Fordd's cost of common equity using CAPM? Fordd's preferred stock stock pays a dividend of $2,5 each year and currently trades at $30 per share. It is assumed to grow annually at a constant rate of 1%. What is the cost of preferred shares and list the name of the model that you use. d. If Fordd's debt trades with a yield to maturity of 6.0%, and effective tax rate is 30%, what is Fordd's weighted average cost of capital (WACC)

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