What is evidence that a transaction has occurred?

A. Journal
B. Ledger
C. Source document
D. Anyone of the answer choices can be considered evidence.

Ans: C. Source document

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Assume the market value of Fords' equity, preferred stock, and debt are$6 billion, $2 billion, and $13 billion, respectively. Ford has a beta of 1.7, the market risk premium is 8%, and the risk-free rate of interest is 3%. Ford's preferred stock pays a dividend of $4 each year and trades at a price of $30 per share. Ford's debt trades with a yield to maturity of 8.0%. What is Ford's weighted average cost of capital if its tax rate is 30%?

A) 9.95% B) 9.48% C) 10.43% D) 11.38%

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The event that triggered the end of the Cold War was the ________

A) fall of the Berlin Wall B) Tiananmen Square massacre C) Day of Rage D) Arab oil embargo

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