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The market value of Fords quity, proferred stock and debt are $8 billion, 53 billion and $11 bilion respectively. Ford has a beta of 14,
The market value of Fords quity, proferred stock and debt are $8 billion, 53 billion and $11 bilion respectively. Ford has a beta of 14, the market risk premium is 7% and the risk-trop rate of interest is 5% Ford's preferred stock pays a dividend of $5 each year and trades at a price of 530 per share. Ford's debt trades with a yield to maturity of 8%. What is Ford's weighted average cost of capital if its tax rate is 25%? OA 906% OB. 9.59% OG 10.12% OD 10.65% Cick to select your
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