$1.$ Ford Motor Company desires to finance all projects with funds raised according to their target capital structure of $60\%$ debt, $10\%$preferred stock, and $30\%$ common stock. Ford can issue debt at an after$-$tax cost of $6\mathrm{.}2\%$ indefinitely, the cost of preferred stock is $9\mathrm{.}2\%,$ Ford has $$4,200,000$ of retained earnings at a cost of $10\mathrm{.}6\%,$ and can issue new common stock at a cost of $12\mathrm{.}4\%.$ a$.$ What is the breakpoint for Ford Motor's where their cheapest source of funds is exhausted? b$.$ What is Ford Motor's first weighted average cost of capital $($where the cheapest sources of funds are used$)?$ What is Ford Motor's second weighted average cost of capital $($after the cheapest sources of funds are exhausted$)?$

Ford Motor Company desires to finance all projects with funds raised according to their target capital structure of $60\%$ debt, $10\%$ preferred stock, and $30\%$ common stock. Ford can issue debt at an after$-$tax cost of $6\mathrm{.}2\%$ indefinitely, the cost of preferred stock is $9\mathrm{.}2\%,$ Ford has $$4,200,000$ of retained earnings at a cost of $10\mathrm{.}6\%,$ and can issue new common stock at a cost of $12\mathrm{.}4\%.$

a$.$ What is the breakpoint for Ford Motor's where their cheapest source of funds is exhausted? $(5$ points$)$

b$.$ What is Ford Motor's first weighted average cost of capital $($where the cheapest sources of funds are used$)?(5$ points$)$

c$.$ What is Ford Motor's second weighted average cost of capital $($after the cheapest sources of funds are exhausted$)?$