Problem:
The target capital structure for QM industries is 42% common stock, 10% preferred stock, 48% debt. If the cost of common equity for the firm is 17.1%, the cost of preferred stock is 9.1%, the before tax cost of debt is 8%, and the firm's tax rate is 35%,
Required:
Question: What is QM's weighted average cost of capital?
Note: Please show how to work it out.