Calculate the WACC for Ford Motor.

a. Assuming the debt ratio for Ford Motor is 60%. What is the company's weighted average cost of capital? Please use the average of the DCF and CAPM estimates for cost of equity.

WACC

B. Assuming the debt ratio is 20%, what is Ford's WACC?

WACC

3/19/2019 Bonds Detail Market Data Investors MetDataBendis Bond Detai Last Updated: 039/2019 Company Information Bond Detail LOGO Symbol: F4433681 GO Eguties and Options FORD MTR CO DEL + ADD TO WATCHLIST Bonds Mutual Funds Coupon Rate Maturity Data 4.346% 9/19/2026 Symbol F4433681 CUSIP 345370CRS Nest Call Date Collable 09/08/2025 Yes Watch Feedback La Trade Prica Lt Trade Yield last Trade Date US Trehury $91 36 03/19/2019 Yield FAQ Trade History Prospech Subscribe to Notices Price/Yield Chart Classification Elements Price Chart Yield Chart Bond Type 12/05/2010 - 06/9/2010 Zoomi D 1M 3M YTD 1Y 31 Y 10 M US Corporate Debentures Senior unsecured Note Industrial Manufacturing Friso Debt Type Industry Group Industry Sub Group Sub-Product Asset Sub-Product Asset Type Price CORP Corporate Bond 105.00 State 100.00 Use of Proceeds Security Code 95.00 Special Characteristics Medium Term Note Nu "Mayr 90.00 Issue Elements 85.00 Offering Date 12/05/2016 2017 2018 2019 Dated Date 12/08/2016 06/08/2017 $1,500,000.00 $1,500,000.00 First Coupon Date Original Offering Amount Outstanding Series Issue Description Credit and Rating Elements Beag (08/29/2018) BED (12/06/2016) Investment Grade Project Name Moody's Rating Standard & Poor's Rating TRACE Grade Default Benkruptcy Insurance Mortgage Insurer Pre-Refunded/Escrowed Additional Description N Payment Frequency Day Count Form Depository/Registration Semi-Annual 30/360 Book Entry DTC, Clearstream Euroclear Senior Unsecured Note Senior Security Level Collateral Pledge Capital Purpose * dollar amount in thousands Put & Redemption Provisions Call Date Call Price $100.00 Call Fraquancy Continuously 09/08/2026 Bond Elements Put Data Put Price Put Frequency 1,500,000.00 1,500,000.00 Original Maturity Size Amount Outstanding Size Yield at offering Prival Offering Coupon Type Escrow Type * dollar amount in thousands 4.35% $100.00 Fixed Moods - Moody's Investor Services auteud credit rating agency that sus credit rating for skoled corporate bonds reported on TRACE Theserings are Mod's current opinions of the relative nerede assoolated with such and Moody's radix are not recommendations to purchasehold ar el xecutor do they comment on the cabit of an actment to my pastor or the market val af uch xecurite. Vetour abik moodys.com for complete legal terms and conditions governin, se Moody's credan information.2010 Noods Corpordon, Woodys netos Service Inc., Moody's https://inra-markets.morningstar.com/BondCenter/BonDetail.jsp?ticker=C667273&symbo=F4433681 1/2 3/19/2019 Bonds Detail Market Data Investors MetDataBendis Bond Detai Last Updated: 039/2019 Company Information Bond Detail LOGO Symbol: F4433681 GO Eguties and Options FORD MTR CO DEL + ADD TO WATCHLIST Bonds Mutual Funds Coupon Rate Maturity Data 4.346% 9/19/2026 Symbol F4433681 CUSIP 345370CRS Nest Call Date Collable 09/08/2025 Yes Watch Feedback La Trade Prica Lt Trade Yield last Trade Date US Trehury $91 36 03/19/2019 Yield FAQ Trade History Prospech Subscribe to Notices Price/Yield Chart Classification Elements Price Chart Yield Chart Bond Type 12/05/2010 - 06/9/2010 Zoomi D 1M 3M YTD 1Y 31 Y 10 M US Corporate Debentures Senior unsecured Note Industrial Manufacturing Friso Debt Type Industry Group Industry Sub Group Sub-Product Asset Sub-Product Asset Type Price CORP Corporate Bond 105.00 State 100.00 Use of Proceeds Security Code 95.00 Special Characteristics Medium Term Note Nu "Mayr 90.00 Issue Elements 85.00 Offering Date 12/05/2016 2017 2018 2019 Dated Date 12/08/2016 06/08/2017 $1,500,000.00 $1,500,000.00 First Coupon Date Original Offering Amount Outstanding Series Issue Description Credit and Rating Elements Beag (08/29/2018) BED (12/06/2016) Investment Grade Project Name Moody's Rating Standard & Poor's Rating TRACE Grade Default Benkruptcy Insurance Mortgage Insurer Pre-Refunded/Escrowed Additional Description N Payment Frequency Day Count Form Depository/Registration Semi-Annual 30/360 Book Entry DTC, Clearstream Euroclear Senior Unsecured Note Senior Security Level Collateral Pledge Capital Purpose * dollar amount in thousands Put & Redemption Provisions Call Date Call Price $100.00 Call Fraquancy Continuously 09/08/2026 Bond Elements Put Data Put Price Put Frequency 1,500,000.00 1,500,000.00 Original Maturity Size Amount Outstanding Size Yield at offering Prival Offering Coupon Type Escrow Type * dollar amount in thousands 4.35% $100.00 Fixed Moods - Moody's Investor Services auteud credit rating agency that sus credit rating for skoled corporate bonds reported on TRACE Theserings are Mod's current opinions of the relative nerede assoolated with such and Moody's radix are not recommendations to purchasehold ar el xecutor do they comment on the cabit of an actment to my pastor or the market val af uch xecurite. Vetour abik moodys.com for complete legal terms and conditions governin, se Moody's credan information.2010 Noods Corpordon, Woodys netos Service Inc., Moody's https://inra-markets.morningstar.com/BondCenter/BonDetail.jsp?ticker=C667273&symbo=F4433681 1/2