You are the CFO of Ford Motor Company (the company) considering taking on a project that requires $10 in preliminary funding (in other words, the project will acquire $10 million in=
costs before it becomes profitable).
Additional Requirements
Min Pages: 10
Level of Detail: Only answer needed
Other Requirements: There are several specific questions that must be addressed in this research paper before a decision on moving ahead with this pro=
ject is made. Based on your research of the most recent financial statement=
s for this company and the financial markets address the following issues:<
br style>
1. Determine the current rate of return on risk-free assets.
2.Determine beta for Ford Motor Company from an internet financial site such=
as Yahoo-Financial.(Do they need to estimate beta or can they just get it from Yahoo-Finance).
3. Determine the required return on market
4. Determine an appropriate interest rate for loans of this amount of capital for a well-establ=
ished company like Ford Motor Company.
5. Determine the internal rate of return for Ford Motor Company using the financial tools at the we=
bsite below:
http://www.datadynamica.com=
/IRR.asp
6. After you calculate or identify the items listed above you will need to address the following issues:
1. Should the company undertake this project? Justify your opinion.
2. In principle, undertaking a project involves making financial decisions
that could make or break the project.
1. How do you plan to finance the project?
2. There are plenty of financing options, including: common stock, preferred stock, debt (many debt options), bank loans, and internal cash. What will be your recommendations on this issue?
3. What is the cost of each of these options?
4. Is there one financing mix that is better than the rest? Explain your rationale. Support your work with research and calculations.
