Question: I need help completing the attached document. Financial Management Ford Company Capital Budgeting Problem The market value of Fords' equity, preferred stock and debt are

I need help completing the attached document. Financial Management Ford Company

I need help completing the attached document. Capital Budgeting Problem The market value of Fords' equity, preferred stock and

Financial Management Ford Company Capital Budgeting Problem The market value of Fords' equity, preferred stock and debt are $7 billion, $3 billion, and $10 billion, respectively. Ford has a beta of 1.8, the 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%? Ford Company Market Capitalization Weight Equity (E) Preferred (P) Debt (D) Total Ford Company Weight After-tax Marginal Weight Cost Equity (E) Preferred (P) Debt (D) X X X = = = Total X =

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