My question is everything here correct?

Ford Company

Capital Budgeting Problem

The market value of Fords' equity, preferred stock and debt are $7 billion, $3 billion, and $10 billion, respectively. Ford has a beta of 1.8, the market risk premium is 7%, and the risk-free rate of interest is 4%. Ford's preferred stock pays a dividend of $3.5 each year and trades at a price of $27 per share. Ford's debt trades with a yield to maturity of 9.5%. What is Ford's weighted average cost of capital if its tax rate is 30%?

Ford Company
		Market Capitalization		Weight
Equity (E)		$7M		0.35
Preferred (P)		$3M		0.15
Debt (D)		$10M		0.5
Total		$20M

Ford Company
		Weight		Cost		After-tax Marginal Weight
Equity (E)		0.35	X	16.60%	=	5.81%
Preferred (P)		0.15	X	12.96%	=	1.94%
Debt (D)		0.5	X	6.65%	=	11.08%
Total			X		=	11.08%

Running Title: Ford Company Capital Budgeting Problem Pa g e | 1 Financial Management Ford Company Capital Budgeting Problem The market value of Fords' equity, preferred stock and debt are $7 billion, $3 billion, and $10 billion, respectively. Ford has a beta of 1.8, the market risk premium is 7%, and the risk-free rate of interest is 4%. Ford's preferred stock pays a dividend of $3.5 each year and trades at a price of $27 per share. Ford's debt trades with a yield to maturity of 9.5%. What is Ford's weighted average cost of capital if its tax rate is 30%? Ford Company Market Capitalization Equity (E) Preferred (P) Debt (D) $7M $3M $10M Total $20M Weight 0.35 0.15 0.5 Ford Company Weight Equity (E) Preferred (P) Debt (D) Total 0.35 0.15 0.5 After-tax Marginal Weight Cost X X X X 16.60% 12.96% 6.65% = = = 5.81% 1.94% 11.08% = 11.08%