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

18.3

percent, the cost of preferred stock is

9.8

percent, the before-tax cost of debt is

7.2

percent, and the firm's tax rate is

35

percent, what is QM's weighted average cost of capital?

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Part 1

QM's weighted average cost of capital is

enter your response here%.

(Round to three decimal places.)