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Ford Motor Company is discusting new ways to recapitaket the firm and rase additonal capital. Its current capital structure has a 25% woight in equity,
Ford Motor Company is discusting new ways to recapitaket the firm and rase additonal capital. Its current capital structure has a 25% woight in equity, 10% in preferied sbeck, and e5s in sebt The cost of equity cepital is 14\%, the cont of preferred stock is 10%, and the pretax cost of dobt is 9%. What is the weighted amirage cost of capial for Ford if is marginal tax rafe in 40 ? A. 9.21% B. 7.01% c. 801% D. 8.81%
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