Question
Consider the following financial data. US 10-Year T-Bond Yield = 2.45% Market Risk Premium = 6.25% Tax Rate = 21% Also the following data for
Consider the following financial data.
US 10-Year T-Bond Yield = 2.45%
Market Risk Premium = 6.25%
Tax Rate = 21%
Also the following data for Ford Motor Company:
Stock Price = $10.38
Market Cap = $41.412B
Beta = .91 Moodys = A1 (115 basis points)
Total Debt = $157.16B million
Number of Shares Outstanding = 3.92B million
Diluted EPS = $.92 Return on Assets = 1.02%
Total Debt/Equity (Book Value) = 429.76
Book Value/share = $9.12
Revenues = $158.72B
Calculate the Cost of Capital for Ford Motor Company.
Using the Ford Motor Company financial profile information (refer to question above) calculate the MVA for Ford
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