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Average Cost of Capital, Rate of Return and Required Return

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You are the CFO of Ford Motor Company (the company) considering taking on a project that requires $10 million in preliminary funding; in other words, the project will acquire $10 million in costs before it becomes profitable.

Calculate the the weighted average cost of capital, current rate of return on a risk free asset, beta, and required return on market and interest rate for Ford based on 2010 financial statements?

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Solution Summary

This solution helps calculated the weighted average cost of capital, current rate of return on a risk free asset, beta, and required return on market and interest rate for Ford based on financial statements.

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Please find attached file.

Risk free return on assets
Risk free interest rate = Treasury bill rate = 2%
Beta
Date Ford S&P 500 Ford return S&P return Beta Required ...

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