The Market Value of Fords' Equity,preferred Stock and Debt Are

question 9

Multiple Choice

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%?

• A)10.12%
• B)10.34%
• C)11.08%
• D)11.47%

Understand the purpose and process of severance pay.

Recognize benchmarking as a tool for organizational improvement.

Understand the key benefits and components of corporate social responsibility.

Recognize the impacts of various technological systems (HRIS) on human resources management.

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Definitions:

Principles and Phases

Fundamental norms, rules, or values that guide business operations and decision-making, and the distinct stages through which a business cycle or project progresses.

Accounts Receivable Control

A system or process used to manage and monitor amounts owed to a business by its customers for goods or services provided on credit.

Subsidiary Accounts

Ledger accounts that provide detailed information supporting summary-level entries in the general ledger and control accounts.

Special Journal

A type of accounting journal designated for recording a particular type of transaction in a more efficient manner.