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Preferred stock in the computation of omg

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Reference no: EM131478668

OMG Inc. has 7 million shares of common stock outstanding, 5 million shares of preferred stock outstanding, and 4,000 bonds. Suppose the common shares sell for $20 per share, the preferred shares sell for $19 per share, and the bonds sell for 109 percent of par. What weight should you use for preferred stock in the computation of OMGâs WACC? (Round your answer to 2 decimal places.)

Reference no: EM131478668

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