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The target capital structure for QM Industries is 42 percent common stock, 7 percent preferred stock, and 51 percent debt. If the cost of common
The target capital structure for QM Industries is 42 percent common stock, 7 percent preferred stock, and 51 percent debt. If the cost of common equity for the firm is 17.8 percent, the cost of preferred stock is 10.3 percent, the before-tax cost of debt is 8.4 percent, and the firm's tax rate is 35 percent, what is QM's weighted average cost of capital?
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