Question-weighted average cost of capital


The target capital structure of QM is 37% common stock, 13% preferred stock, and 50% debt. If the cost ofo common equity for the firm is 18.3%, the cost of preferred stock is 10.5%, the before tax cost of debt is 7.6% and the firms tax rate is 35%, what is QMs weighted average cost of capital?

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Finance Basics: Question-weighted average cost of capital
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