Weight used for equity in the computation of OMG WACC

Assignment Help Financial Management
Reference no: EM131561386

OMG Inc. has 5 million shares of common stock outstanding, 4 million shares of preferred stock outstanding, and 6,000 bonds. Suppose the common shares are selling for $17 per share, the preferred shares are selling for $26 per share, and the bonds are selling for 108 percent of par. What would be the weight used for equity in the computation of OMG’s WACC? (Round your answer to 2 decimal places.)

Weight used %

Reference no: EM131561386

Questions Cloud

Financial crisis and afterwards gold prices skyrocketed : During the financial crisis and afterwards gold prices skyrocketed. Discuss why gold prices changed.
What will be optimal cash return point : What will be its optimal cash return point?
Cash flow table to represent your cash outlay per year : Prepare a cash flow table to represent your cash outlay per year.
What will be optimal upper cash limit : the trading cost per sale or purchase of marketable securities to be $340 per transaction. What will be its optimal upper cash limit?
Weight used for equity in the computation of OMG WACC : What would be the weight used for equity in the computation of OMG’s WACC?
Option pricing model to analyze investment timing option : Instead of using a decision tree analysis, use the Black-Scholes Option Pricing Model to analyze this investment timing option.
When you are looking for certain life insurance fund : What are the considerations when you are looking for a certain life insurance fund?
What will be firm operating cycle : Assume that all of Dunn’s sales are on credit. What will be the firm’s operating cycle?
Differences between yield-to-call and yield-to-maturity : Detail the differences between yield-to-call, yield-to-maturity, yield-to-worst.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd