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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 15% weight in equity,

Ford Motor Company is discussing new ways to recapitalize the firm and raise additional capital. Its current capital structure has a 15% weight in equity, 20% in preferred stock, and 65% in debt. The cost of equity capital is 14%, the cost of preferred stock is 10%, and the pretax cost of debt is 8%. What is the weighted average cost of capital for Ford if its marginal tax rate is 25%?

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