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What weight should you use for preferred stock

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Question - 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 sell for $16 per share, the preferred shares sell for $15 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?

Reference no: EM133172754

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