12-12A. (Weighted average cost ofcapital) The target capital structure for QM Industries is 40 percent common stock, 10 percent preferred stock, and 50 percent debt. If the cost of e~ty for the firm is 18 percent, the cost of preferred stock is 10 percent, the before-tax cost of debt is 8percent, and the firm's tax rate is 35 percent, what is QM's weighted average cost of capital?