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The market value of Fords' equity, preferred stock and debt are $8 billion, $2 billion,...

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Finance

The market value of Fords' equity, preferred stock and debt are $8 billion, $2 billion, and $10 billion, respectively. Ford has a beta of 1.5, the market risk premium is 7%, and the risk-free rate of interest is 3%. Ford's preferred stock pays a dividend of $3 each year and trades at a price of $30 per share. Ford's debt trades with a yield to maturity of 7.5%. What is Ford's weighted average cost of capital if its tax rate is 40%?

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