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You are the CFO of Ford Motor Company (the company) considering taking on a project that requires $10 million in preliminary funding (in other words, the project will acquire $10 million in costs before it becomes profitable. Should the company undertake this project? Justify your opinion. In principle, undertaking a project involves making financial decisions that could make or break the project. How do you plan to finance the project? There are plenty of financing options, including: common stock, preferred stock, debt (many debt options), bank loans, and internal cash. Is there one financing mix that is better than the rest? Explain your rationale. Support your work with research.

Research the Internet to find out information on Ford Motor Company's balance sheet, income statement, statement of retained earnings and statement of cash flows for the most current year reported. From your research determine the current rate of return on risk-free assets, beta, required return on market, and interest rate.

 

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