Assume Ford Motor Company Is Discussing New Ways to Recapitalize

question 46

Multiple Choice

Assume Ford Motor Company is discussing new ways to recapitalize the firm and raise additional capital. Its current capital structure has a 30% weight in equity, 15% in preferred stock, and 55% in debt. The cost of equity capital is 16%, the cost of preferred stock is 11%, and the pretax cost of debt is 8%. What is the weighted average cost of capital for Ford if its marginal tax rate is 40%?

• A) 9.09%
• B) 9.54%
• C) 10.00%
• D) 10.45%

Understand how Malthusian theory applies to population growth and its limitations.

Comprehend the historical and contemporary trends in work hours and productivity growth.

Recognize the relationship between economic development and population dynamics.

Identify factors contributing to economic growth and their impacts on different sectors.

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Definitions:

Authorization Cards

Documents signed by employees to indicate their support for a union to become their representative for collective bargaining purposes.

NLRB Representative

An official from the National Labor Relations Board, which is a US agency responsible for enforcing labor laws and addressing disputes between employees and employers.

Certification Election

A vote conducted by a government agency to determine whether employees want to be represented by a labor union.

Time Restriction

Limitations placed on the duration within which certain actions can be taken or functions performed.