Objective: to estimate the risk parameters for your company and use these parameters to estimate costs of equity and capital forFord Motor Company

Looking at the stock price history of your company, evaluate both its riskiness and its performance as an investment and relative to the market.

Calculating the Leveraged Betafor Ford

1) MV Equity = Share Price*# Shares Outstanding

2) Interest-coverage Ratio = EBIT/Interest Expense

3) MV of Debt =

4) Total Firm Value= MV of Equity + MV of Debt =

5) D/E Ratio=MV Debt/MV Equity =

6) Levered Beta for Coca-Cola = L=U(1+[(1-Tc)D/E]) =

https://ca.finance.yahoo.com/quote/F/financials/

https://shareholder.ford.com/investors/financials-and-filings/default.aspx#annual