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Related to Checkpoint 14.1) (Weighted average cost of capital) The target capital structure for...

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Finance

Related to Checkpoint 14.1) (Weighted average cost of capital) The target capital structure for QM Industries is

4040

percent common stock,

1010

percent preferred stock, and

5050

percent debt. If the cost of common equity for the firm is

18.018.0

percent, the cost of preferred stock is

10.010.0

percent, the before-tax cost of debt is

8.08.0

percent, and the firm's tax rate is

3535

percent, what is QM's weighted average cost ofcapital?

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