(Related to Checkpoint 14.1) (Weighted average cost of capital) The target capital structure for QM Industries is 35 percent common stock, 8 percent preferred stock, and 57 percent debt. If the cost of common equity for the firm is 18.7 percent, the cost of preferred stock is 9.3 percent, the before-tax cost of debt is 8.2 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.)