The market value of Fords' equity, preferred stock and debt are $7 billion, $1 billion, and $10 billion, respectively.

Ford has a beta of 1.8, the market risk premium is 7%, and the risk-free rate of interest is 3%. Ford's preferred stock pays a dividend of $4.50 each year and trades at a price of $26 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 30%?

A. 10.72%

B. 12.87%

C. 11.26%

D. 11.79%