The market value of Fords' equity, preferred stock and debt are $6 billion, $5 billion and $13 billion respectively. Ford has a beta of 1.2, the market risk premium is 7% and the risk-free rate of interest is 3%. Ford's preferred stock pays a dividend of $4 ach year and trades at a price of $30 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 25%?

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Part 1

A. 8.06%

B. 9.01%

C. 9.49%

D. 8.54%