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FinanceQ&A Library(Related to Checkpoint 14.1) (Weighted average cost of capital) The target capital structure for QM Industries is 40 percent common stock, 10 percent preferred stock, and 50 percent debt. If the cost of common equity for the firm is 18 percent, the cost of preferred stock is 10 percent, the before-tax cost of debt is 8 percent, and the firm's tax rate is 35 percent, what is QM's weighted average cost of capital? QM's weighted average cost of capital is %. (Round to three decimal places.)Question

(Related to Checkpoint 14.1) (Weighted average cost of capital)

The target capital structure for QM Industries is 40 percent common stock, 10 percent preferred stock, and 50 percent debt. If the cost of common equity for the firm is 18 percent, the cost of preferred stock is 10 percent, the before-tax cost of debt is 8 percent, and the firm's tax rate is 35 percent, what is QM's weighted average cost of capital?

QM's weighted average cost of capital is %. (Round to three decimal places.)

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