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Assume the market value of Ford's equity, preferred stock, and debt are $ 8 billion, $ 2 billion, and $ 1 1 billion, respectively. Ford

Assume the market value of Ford's equity, preferred stock, and debt are $8 billion, $2 billion, and $11 billion, respectively. Ford has a beta of 1.6, the market risk premium is 7%, and the risk - free rate of interest is 4%. Ford's preferred stock pays a dividend of $4 each year and trades at a price of $29 per share. Ford's debt trades with a yield to maturity of 9%. What is Ford's weighted average cost of capital if its tax rate is 25%?
A.11.24%
B.11.77%
C.12.84%
D.10.7%
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