Question
Consider the following financial data. US 10-Year T-Bond Yield = 1.5% Market Risk Premium = 6.25% Tax Rate = 21% Also the following data for
Consider the following financial data.
US 10-Year T-Bond Yield = 1.5%
Market Risk Premium = 6.25%
Tax Rate = 21%
Also the following data for Ford Motor Company:
Stock Price = $9.17
Market Cap = $35.946 billion
Beta = .95
Moodys = A1 (115 basis points)
Total Debt = $156.06 billion
Number of Shares Outstanding = 3.92 billion
EPS = $.54
Return on Assets = .93%
Total Debt/Equity (Book Value) = 431.88
Book Value/share = $9.05
Revenues = $158.65 billion
Price/Earning Multiple = 16.98
Calculate the Cost of Capital AND MVA for Ford Motor Company.
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Better Than Alpha Three Steps To Capturing Excess Returns In A Changing World
Authors: Christopher M. Schelling
1st Edition
1264257651,126425766X
