What weight should you use for debt

Reference no: EM132136709

Question: 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 are selling for $30 per share, the preferred shares are selling for $29 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?

Reference no: EM132136709

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