The market value of fords equity preferred stock and debt, Ask an Expert

Finance

The market value of Ford's equity, preferred stock, and debt are 7billion, 3billion, and 10billion respectively. Ford has a beta of 1.8, market risk premium is 7%, and the risk-free rate of interest is 4%. Ford's preferred stock pays a dividend of $3.5 each year and trades at a price of $27 per share. Ford's debt trades with a yield to maturity of 9.5%. What is Ford's weighted average cost of capital if its tax rate is 30%?

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9999749

Have any Question?Write your Review or question?

Related Questions in Basic Finance

If hairbran stylists is evaluating a project that costs

If Hairbran Stylists is evaluating a project that costs $42,000 and the project will generate $11,000 over each of the next 5 years with a required rate of return of 9%, should they accept the project? What is the net pr ...

How do you separate the individual aspects of the

How do you separate the individual aspects of the successful partnership pyramid into inputs and outputs and explain why each aspect of the pyramid is an input or an output.

A stock is trading at 78 per share the stock is expected to

A stock is trading at $78 per share. The stock is expected to have a year-end dividend of $5 per share (D1=$5), which is expected to grow at some constant rate g throughout time. The stock's required rate of return is 15 ...

Cowcor copr currently has 76 million in debt outstanding

COWCOR COPR currently has $76 million in debt outstanding with a 6% interest rate. The terms of the loan require it to repay $19 million of the balance each year. Suppose the marginal corporate rate is 40% and that the i ...

Shareholder wealth in a firm is represented bya the

"Shareholder wealth" in a firm is represented by: a) The number of people employed in the firm. b) The book value of the firm's assets less the book value of its liabilities. c) The amount of salary paid to its employees ...

Question - assume that you recently graduated with a major

Question - Assume that you recently graduated with a major in Finance and you landed a job as a financial planner with a large financial services corporation. The organization where you work has a research-intensive, val ...

What are the ways that it can help comply with legal

What are the ways that IT can help comply with legal requirements and social responsibilities surrounding the sales of alcohol?

Cowcor copr makes yummy cheeseburgers and fries it has 16

COWCOR COPR makes yummy cheeseburgers and fries. It has $1.6 million in debt outstanding, equity valued at $2.3 million, and pays corporate income tac at a 39% rate. Its cost f equity is 13% and its cost of debt is 5%. A ...

Jane and john doe are twinsnbspjane saves 10000 per year

Jane and John Doe are twins. Jane saves $10,000 per year from age 25 to 34 and nothing from age 35 onward (10 years of saving in total). John saves nothing from age 25 to 34 and $10,000 from age 35 to 64 (30 years of sav ...

A call option on a stock has an exercise price of 3450 if

A call option on a stock has an exercise price of? $34.50. If the stock price at expiration is? $37.50, what is the option payoff for a short call? position?

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert