hw question 26

Question 26 3 pts Assume Ford Motor Company is discussing new ways to recapitalize the firm and raise additional capital. Its current capital structure has a 60% weight in equity, 10% in preferred stock, and 30% in debt. The cost of equity capital is 12%, the cost of preferred stock is 7%, and the pretax cost of debt is 8%. What is the weighted average cost of capital for Ford if its marginal tax rate is 40%? 0 10.45% O 9.75% O 9.80% O 9.34%