D H Problem 14-22 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? Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the green cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. Given Data: Weight of common stock Weight of preferred stock Weight of debt Cost of common stock Cost of preferred stock Tax rate Cost of debt 40% 10% 50% 18% 10% 35% 8% 2 WACC 5 5 7 Requirements 1 Start Excel 2 In cell D14, by using cell references, calculate the company's weighted average cost of capital. (1 pt.) 3 Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed 9 0 1 2 23