Ford Company Capital Budgeting Project�: Mini-case

Ford Company Capital Budgeting Project�: Mini-case
You are provided with the following information to determine Ford�s weighted average cost of capital that will be used for capital project calculations. As a Finance Analyst for Ford, you will calculate and support the development of its weighted average cost of capital and communicate it to the CFO of Ford. After you have calculated the required data points in the two tables below, provide a brief paper (approximately 300 to 400 words) to the CFO summarizing the weighted average cost of capital you determined for Ford, where they may be risks in the calculation (how the calculation may change over time), how the weighted average cost of capital you calculated should be applied when making cost of capital project decisions, and some scenarios that the CFO should be aware of that may change the weighted average cost of capital at some future point. Your discussion of the scenarios should cover aspects of management, marketing and broader economic factors that may influence the weighted average cost of capital.

Submit the attached and the short paper together for this assignment.
If you have any questions as you are working on this mini-case, please post them in the �Questions and Answers� area in Module 7.
To receive full credit, for Mini-cases:

You are to answer the questions that are found at the end of each case in your textbook as clearly and succinctly as possible. You will be graded on the accuracy of your answers and the application of the proper support from text/class material. Please show any and all computations required since partial credit will be given for your work (when work is shown), even if the final answer is incorrect.

Review the SBT Case Analysis Rubric located in the “Start Here” section of the course for more information on grading criteria.

Once you have completed your mini-case, you need to submit this to the dropbox by Sunday night, midnight ET to receive full credit for this assignment. Please refer to the syllabus for the late policy.

Now that you have completed this activity, please proceed.
Ford Problem.docx