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Ford Motor Company is discussing new ways to recapitalize the firm and raise additional capital....

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Finance

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Ford Motor Company is discussing new ways to recapitalize the firm and raise additional capital. Its current capital structure has a 10% weight in equity, 20% in preferred stock, and 70% in debt. The cost of equity capital is 17%, the cost of proferred stock is 11%, and the pretax cost of debt is 9%. What is the weighted average cost of capital for Ford if its marginal tax rate is 25%? A 9.06% B. 9.49% C. 8.19% OD. 8.63%

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