The target capital structure for QM Industries is 35 percent common stock 7 percent preferred? stock, and 58 percent debt.
If the cost of common equity for the firm is 18.4 ?percent, the cost of preferred stock is 9.4 percent, the? before-tax cost of debt is 7.8 percent, and the firm's tax rate is 35 percent, what is QM's weighted average cost of capital?