Use for debt in the computation of wacc

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Reference no: EM131347720

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 are selling for $25 per share, the preferred shares are selling for $24 per share, and the bonds are selling for 109 percent of par. What weight should you use for debt in the computation of OMG’s WACC? (Round your answer to 2 decimal places.)

Reference no: EM131347720

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