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What is the cost of equity for ford

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1) Ford currently has a beta of 1.05. Assume that the risk-free rate is 3.5% and the market risk premium is 8.1%. What is the cost of equity for Ford?

2) Assume that Microsoft issues a bond which pays semiannual coupon payments has a price of $1,215 and a face value of $1,000. The bond has 10 years to maturity and an annual coupon rate of 9%. Microsoft currently has a AAA rating, so there is essentially no chance of default. What is the cost of debt for Ford?

Reference no: EM133072172

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