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Ford has 1.0 million shares of stock outstanding.The stockcurrently sells for $25 per share.The firm's debt is publicly traded and its market value was recently
Ford has 1.0 million shares of stock outstanding.The stockcurrently sells for $25 per share.The firm's debt is publicly traded and its market value was recently quoted at 102% of face value.It has a total face value of $7 million, and it is currently priced to yield 7 percent.The risk-free rate is 6%, and the market risk premium is 7%.You've estimated that Ford has a beta of .95.If the corporate tax rate is 34%, what is the weighted average cost of capital of Ford?
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