Question
Ford (F) Corp has a beta of 1.41 and an average YTM on its bonds of 9%. The company is 64% debt and 36% equity
Ford (F) Corp has a beta of 1.41 and an average YTM on its bonds of 9%. The company is 64% debt and 36% equity financed. The effective tax-rate of Ford is 21%. Finally, the current estimate of the risk-free rate is 4% and the market risk premium is 6%. What is the WACC of Ford?
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Healthcare Finance An Introduction To Accounting And Financial Management
Authors: Louis C. Gapenski
2nd Edition
1567931650, 978-1567931655
