Ford Motor Company is discussing new ways to recapitalize the firm and raise additlonal capital. Its...
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Ford Motor Company is discussing new ways to recapitalize the firm and raise additlonal capital. Its current capital structure has a 25% weight in equity, 10% in preferred stock, and 65% in debt. The cost of equity capital is 14%, the cost of preferred stock is 8%, and the pretax cost of debt is 7%. What is the weighted average cost of capital for Ford if its marginal tax rate is 35%? O A. 7.26% O B. 6.89% OC. 7.98% O D. 8.35% Ford Motor Company is discussing new ways to recapitalize the firm and raise additlonal capital. Its current capital structure has a 25% weight in equity, 10% in preferred stock, and 65% in debt. The cost of equity capital is 14%, the cost of preferred stock is 8%, and the pretax cost of debt is 7%. What is the weighted average cost of capital for Ford if its marginal tax rate is 35%? O A. 7.26% O B. 6.89% OC. 7.98% O D. 8.35%
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Related Book For
Fundamental Financial Accounting Concepts
ISBN: 978-0078025907
9th edition
Authors: Thomas Edmonds, Christopher Edmonds
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