Problem:
The market value of? Fords' equity, preferred? stock, and debt are $6 ?billion, $2 ?billion, and $13 ?billion, respectively. Ford has a beta of ?1.3, the market risk premium is 7?%, and the? risk-free rate of interest is ?5%. ? Ford's preferred stock pays a dividend of $4 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 25?%?