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(Weighted average cost of capital) The target capital structure for QM Industries is 44 percent common stock, 8 percent preferred stock, and 48 percent debt.

(Weighted average cost of capital) The target capital structure for QM Industries is 44 percent common stock, 8 percent preferred stock, and 48 percent debt. If the cost of common equity for the firm is 18.9 percent, the cost of preferred stock is 9.3 percent, the before-tax cost of debt is 8.6 percent, and the firm's tax rate is 35 percent, what is QM's weighted average cost of capital?

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