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The market value of Fords' equly, preforred stock, and debt are $6 blion, $3 billon, and $14 blilon, rospectively. Ford has a bota of 1.6,

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The market value of Fords' equly, preforred stock, and debt are $6 blion, $3 billon, and $14 blilon, rospectively. Ford has a bota of 1.6, the market fisk promium is 7x, and the risk.tee rate of interest is 5%. Forfi pretened slock poys a didend of 53 each year and trades at a price of 528 por share. Forfs doet trades with a yield to maturly of 7.5%. What is Fords weghted average cost of captal if its tax ratele 25% ? A. 10.86 B. 9.5% c. 9.05% D. 9.95%

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