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Consider the followingfinancial data. US 10-Year T-Bond Yield = 2.45% Market Risk Premium = 6.25% Tax Rate = 21% Also the following data for Ford

Consider the followingfinancial data.

US 10-Year T-Bond Yield = 2.45%

Market Risk Premium = 6.25%

Tax Rate = 21%

Also the following data for Ford MotorCompany:

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 MVA and Cost of Capital for Ford Motor Company.

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