FIN 370 / Finance for Business Weighted average cost of capital

(Weighted average cost of capital)

The target capital structure of

QM Industries is 41% common stock, 8%preferred stock, and 51% debt. If the cost of common equity for the firm is 17.2%, the cost of preferred stock is 10.8%, the before-tax cost of debt is 7.6%, and the firm's tax rate is 35%, what is QM's weighted average cost of capital?

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