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3. Ford Motor Company is discussing new ways to recapitalize the firm and raise additonal capital. Its current capital structurs has a 15% weight in

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3. Ford Motor Company is discussing new ways to recapitalize the firm and raise additonal capital. Its current capital structurs has a 15% weight in equity. 25% in preferred stock, and 60% in debt. The cost of equity cepital is 16%, the cost of preferred stock is 9%, ard the pretax cost of debt is 7%. What is the woighted average cost of capital for Ford it its marginal tax rate is 35% ? A. 8.12% B. 7.75% c. 7.38% D. 7.01% 4. What is the yield to maturily of a five-year, $10,000 bond with a 5.5% coupon rate and semiannual coupons it this bond is carrertay vacing for a price of 59.723 ? A. 6.15% B. 8.61% C. 3.08% D. 7.38% 5. You are saving money to buy a car. If you save $320 per month staring one month from now at an interest rate of 12%, how much will you be able to spend on the car after saving for 5 years? A. $31,361 B. $26,134 C. $15,681 D. $36,588

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