What is the cost of equity for ford

Assignment Help Finance Basics
Reference no: EM133072172

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

Questions Cloud

Find rate of return on jimmy oil investment : Let us pretend that today was in Oct. 2019. The crude oil futures contract would mature one year later, Oct. 2020;
Explain the 1-year maturity futures price : If the 1-year T-Bill rate is 3% and the expected dividend yield on the S&P 500 is 2%, What should the 1-year maturity futures price be?
Prepare journal entries to record the issuance of notes : A company issues a 45-day note payable with a face value of Rp90.000.000 to one of its creditors at an 8% discount rate. Prepare journal entries
Developing Paragraph Writing Skills for Essays : Developing Paragraph Writing Skills for Essays - Lack of quality internal communication between managers and subordinates leading to, but not limited
What is the cost of equity for ford : 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?
Percent of pfizer total capital : 1) Pfizer's market value of equity is $70 billion and its market value of debt is $100 billion. What percent of Pfizer's total capital consists of equity?
What is the risk premium for the large stock portfolio : The mean annual return on the large stock portfolio is 10%. The mean annual return on T-bills if 2%. What is the risk premium for the large stock portfolio
What is the npv of project : Consider a project that requires spending of $15,000 immediately and generates $6,000 per year for the next 4 years (assume each $6,000 comes at the end of each
What is the bank cost of preferred stock : Sixth Fourth Bank has an issue of preferred stock with a $6.00 stated dividend that just sold for $122 per share. What is the bank's cost of preferred stock

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd