Stonewall Corp. currently has $30 million in debt, $10 million in preferred stock, and $60 million in common stock (all stated at the current market

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Stonewall Corp. currently has $30 million in debt, $10 million in preferred stock, and $60 million in common stock (all stated at the current market value). The expected return is 12% for Stonewall's common stock and 8% on their preferred stock. The YTM on Stonewalls debt is 5%. What is Ford's weighted average cost of capital if its tax rate is 30%?

Question 21 options:

a)

13.0%

b)

5.7%

c)

7.8%

d)

9.1%