Assume the Market Value of Fords' Equity, Preferred Stock, and Debt

question 79

Multiple Choice

Assume the market value of Fords' equity, preferred stock, and debt are$6 billion, $2 billion, and $13 billion, respectively. Ford has a beta of 1.7, the market risk premium is 8%, and the risk-free rate of interest is 3%. Ford's preferred stock pays a dividend of $4 each year and trades at a price of $30 per share. Ford's debt trades with a yield to maturity of 8.0%. What is Ford's weighted average cost of capital if its tax rate is 30%?

• A) 9.95%
• B) 9.48%
• C) 10.43%
• D) 11.38%

Understand the historical and ethical considerations in medical research and practice.

Recognize the role of ethics committees and Institutional Review Boards in healthcare.

Comprehend the significance of informed and voluntary consent in medical research.

Identify the impact and implications of socio-economic factors on healthcare decisions and ethics.

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Definitions:

Conditioned Fear

A learned response to a previously neutral stimulus that has been consistently paired with an aversive stimulus.

Traumatic Bus Accident

A severely distressing or disturbing event involving a bus, leading to physical injury and/or psychological impact on those involved.

Less Likely

A term used to indicate a lower probability or possibility of an event occurring.

Two-factor Theory

A psychological theory suggesting that emotional experiences arise from a combination of cognitive evaluations and physiological responses.