The market value of fords equity preferred stock and debt

Reference no: EM13622172

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%?

Reference no: EM13622172

Questions Cloud

White wedding corporation will pay a 265 per share dividend : white wedding corporation will pay a 2.65 per share dividend next year. the company pledges to increase its dividend by

Denver interiors inc has sales of 836000 and cost of goods : denver interiors inc. has sales of 836000 and cost of goods sold of 601000. the firm had a beginning inventory of 36000

Ups has a beta of 12 and walmart has a beta of 08 the : ups has a beta of 1.2 and walmart has a beta of 0.8. the risk-free rate of interest is 4 and the market risk premium is

Your firm has preferred stock outstanding that pays a : your firm has preferred stock outstanding that pays a current dividend of 4.50 per year and has a current price of

The market value of fords equity preferred stock and debt : the market value of fords equity preferred stock and debt are 7billion 3billion and 10billion respectively. ford has a

Time warner shares have a market capitalization of : time warner shares have a market capitalization of 55billion. the company just paid a dividend of 35cents per share and

Coverall carpets inc is planning to borrow 12000 from the : coverall carpets inc. is planning to borrow 12000 from the bank the bank offers the choice of a 12 percent discounted

Picard orchards reuires a 100000 annual loan in order to : picard orchards reuires a 100000 annual loan in order to pay laborors to tend and harvest its fruit crop. picard

If a firm pays out 30 of its earnings as dividends and has : if a firm pays out 30 of its earnings as dividends and has averaged a 20 percent return on assets how quickly can the

User Account

All Pages