The market value of fords equity, preferred stock and debt are 6 billion, 4 billion, and 15 billion respectively. Ford has a beta of 1.2, the market risk premium is 6% and the risk free rate of interest is 3%. Fords preferred stock pays a dividend of $3 each year and trades at a price of $26 per share. Fords debt trades with a yield to maturity of 8%. Whats fords weighted average cost of capital if its tax rate is 25%? A. 7.89% B. 6.71% C. 7.5% D. 7.1%