I tried the formula that was given here and the answer was not correct. I tried to use the different examples but nothing worked. Can someone please help me with this question:
The target capital structure for QM Industries is 43% common stock, 10% preferred stock and 47% debt. If the cost of common equityfor the firm is 17.1%, the cost of prefered stock is 9.3%, the before tax cost of debt is 7.7% and the firms tax rate is 35%, what is QM's weighted average cost of capital?