Debt in the computation of omg wacc

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OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock outstanding, and 50,000 bonds. If the common shares sell for $21 per share, the preferred shares are selling for $10 per share, and the bonds sell for 111 percent of par ($1,000). What weight should you use for debt in the computation of OMG's WACC?

Reference no: EM133033099

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