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The taught capital structure for QM Industries is 45% common stock 7% preferred and 48% debt. If the cost of common equity for
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How to work the problem.
The taught capital structure for QM Industries is 45% common stock 7% preferred and 48% debt. If the cost of common equity for the firm is 17%, the cost of preferred stock is 10%, the before-tax cost of debt is 8.4% and the firm tax rate is 35%, what is