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Ford has 1.0 million shares of stock outstanding.  The stock currently sells for $25 per share.  The firm’s...

Ford has 1.0 million shares of stock outstanding.  The stock currently sells for $25 per share.  The firm’s debt is publicly traded and its market value was recently quoted at 102% of face value.  It has a total face value of $7 million, and it is currently priced to yield 7 percent.  The risk-free rate is 6%, and the market risk premium is 7%.  You’ve estimated that Ford has a beta of .95.  If the corporate tax rate is 34%, what is the weighted average cost of capital of Ford?

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