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Ford Motor Company is discussing new ways to recapitalize the firm and raise additional capital. Its current capital structure has a 35% weight in equity.

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Ford Motor Company is discussing new ways to recapitalize the firm and raise additional capital. Its current capital structure has a 35% weight in equity. 15% in preferred stock, and 50% in debt. The cost of equity capital is 18%, the cost of preferred stock is 11%, and the pretax cost of debt is 8%. What is the weighted average cost of capital for Ford if its marginal tax rate is 30%? O A. 12.36% OB. 10.75% OC. 11.29% OD. 11.83%

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