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

question 9

Multiple Choice

Assume the market value of Fords' equity, preferred stock and debt are $7 billion, $4 billion and $10 billion respectively. Ford has a beta of 1.4, the market risk premium is 6% 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 $25 per share. Ford's debt trades with a yield to maturity of 8.5%. What is Ford's weighted average cost of capital if its tax rate is 35%?

Understand the purpose and importance of gathering meaningful accounting metrics for assessing employee or unit performance within a company.

Recognize the limitations and context-required nature of accounting metrics.

Comprehend the use of performance measurement systems in assessing company performance according to its goals and objectives.

Identify how managerial accounting information is used for evaluating employee performance and making strategic decisions.

Definitions:

Job Specifications

A detailed description of the qualifications, skills, experience, and responsibilities required for a specific job position.

Quality Workforce

A team of employees recognized for their skills, competencies, and dedication to delivering high-quality work.

Career Planning

Is the process of systematically matching career goals and individual capabilities with opportunities for their fulfilment.

Affirmative Action

Commits the organisation to hiring and advancing minority groups and women.