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( Related to Checkpoint 1 4 . 1 ) ( Weighted average cost of capital ) The target capital structure for QM Industries is 3

(Related to Checkpoint 14.1)(Weighted average cost of capital) The target capital structure for QM Industries is 39 percent common stock, 5 percent
preferred stock, and 56 percent debt. If the cost of common equity for the firm is 18.8 percent, the cost of preferred stock is 10.2 percent, the before-tax cost
of debt is 7.1 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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