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The market value of Fords' equity, preferred stock, and debt are $8 billion, $1 bilion, and $11 billion, respectively. Ford has a beta of 1.7,

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The market value of Fords' equity, preferred stock, and debt are $8 billion, $1 bilion, and $11 billion, respectively. Ford has a beta of 1.7, the market risk premium is 8%, and the risk-free rate of interest is 3%. Ford's preferred stock pays a dividend of $3 each year and trades at a price of $27 per share. Ford's debt trades with a yield to maturity of 7.5%. What is Ford's weighted average cost of capital if its tax rate is 30%7 O A 10.08% OB. 11.09% O C. 12.1% OD 10.59%

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