About the weighted average cost of capital

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(Weighted average cost of capital) The target capital structure for QM Industries is 37 percent common stock, 9 percent preferred stock, and 54 percent debt. If the cost of common equity for the firm is 18.6 percent, the cost of preferred stock is 10.6 percent, the before-tax cost of debt is 7.7 percent, and the firm's tax rate is 35 percent, what is QM's weighted average cost of capital?

Reference no: EM131183390

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