Use for preferred stock in the computation

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OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock outstanding, and 5,000 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 OMG’s WACC? (Round your answer to 2 decimal places.) Weight used %

Reference no: EM131057772

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Use for preferred stock in the computation : OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock outstanding, and 5,000 bonds. Suppose the common shares sell for $20 per share, the preferred shares sell for $19 per share, and the bonds sell for 109 per..

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