Assume the market value of Ford's equity, preferred stock and debt are $$8$ billion, $$3$ billion and $$12$ billion respectively. Ford has a

beta of $1\mathrm{.}4,$ the market risk premium is $7\%$ and the risk $-$ free rate of interest is $5\%.$ Ford's preferred stock pays a dividend of $$4$ each

year and trades at a price of $$27$ per share. Ford's debt trades with a yield to maturity of $8\mathrm{.}5\%.$ What is Ford's weighted average cost

of capital if its tax rate is $25\%?$

A$.9\mathrm{.}36\%$

B$.10\mathrm{.}4\%$

C$.9\mathrm{.}88\%$

D$.8\mathrm{.}84\%$