Preferred stock in the computation of omg wacc

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Reference no: EM131972563

Do anyone know how to give the correct answer to this question? OMG Onc, has 5 million shares of common stock outstanding, 4 million shares of preferred stock outstanding, and 6,000 bonds. Suppose the common shares sell for $16 per share, the preferred shares sell for $15 per share, and bonds sell for 109 percent of Par. What weight should you use to preferred stock in the computation of OMG's WACC? (Round your answer to 2 decimal places.)

Reference no: EM131972563

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