The market value of Fords' equity, preferred stock, and debt are $8 billion, $3 billion, and $12 billion, respectively. Ford has a beta of 1.5, the market risk premium is 8%, and the risk-free rate of interest is 4%. Ford's preferred stock pays a dividend of $2 each year and trades at a price of $26 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 25%? O A. 9.5% B. 11.4% C. 9.98% D. 10.45% ....

The market value of Fords' equity, preferred stock, and debt are \\( \\$ 8 \\) billion, \\( \\$ 3 \\) billion, and \\( \\$ 12 \\) billion, respectively. Ford has a beta of 1.5 , the market risk premium is \8, and the risk-free rate of interest is \4. Ford's preferred stock pays a dividend of \\( \\$ 2 \\) each year and trades at a price of \\$26 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 \25 ? A. \9.5 B. \11.4 C. \9.98 D. \10.45