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The market value of Fords' equity, preferred stock, and debt are $7 billion, $1 billion, and $11 billion, respectively. Ford has a beta of 1.4,

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The market value of Fords' equity, preferred stock, and debt are $7 billion, $1 billion, and $11 billion, respectively. Ford has a beta of 1.4, the market risk premium is 8%, and the risk-free rate of interest is 4%. Ford's preferred stock pays a dividend of $3 each year and trades at a price of $28 per share. Ford's debt trades with a yield to maturity of 8.5%. What is Ford's weighted average cost of capital if its tax rate is 40%? O A. 10.94% OB. 9.12% C. 10.03% OD. 9.57% Click to select your

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