What is ford weighted average cost of capital

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The market value of Fords' equity, preferred stock, and debt are $6 billion, $2 billion, and $15 billion, respectively. Ford has a beta of 1.5, the market risk premium is 7%, and the risk-free rate of interest is 4%. Ford's preferred stock pays a dividend of $3 each year and trades at a price of $27 per share. Ford's debt trades with a yield to maturity of 8.5%. What is Ford's weighted average cost of capital if tax rate is 30%?

Reference no: EM13284348

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