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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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