Business & Finance
Fin 370 / finance for business weighted average cost of capital
Fin 370 / finance for business weighted average cost of capital.
(Weighted average cost of capital)
The target capital structure of
QM Industries is 41% common stock, 8%preferred stock, and 51% debt. If the cost of common equity for the firm is 17.2%, the cost of preferred stock is 10.8%, the before-tax cost of debt is 7.6%, and the firm’s tax rate is 35%, what is QM’s weighted average cost of capital?
Fin 370 / finance for business weighted average cost of capital