What would be weight used for equity in computation of wacc

Assignment Help Financial Management
Reference no: EM131613124

OMG Inc. has 6 million shares of common stock outstanding, 5 million shares of preferred stock outstanding, and 7,000 bonds. Suppose the common shares are selling for $18 per share, the preferred shares are selling for $27 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: EM131613124

Questions Cloud

Determine the appropriate software engineering tools : ITECH7410 Software Engineering Methodologies Assignment - Individual Roots of Polynomials - Quadratic. determine the appropriate Software Engineering tools
What is the optimal sharpe ratio in portfolio of two assets : What is the optimal Sharpe ratio in a portfolio of the two assets? What is smallest expected loss for this portfolio over coming year with probability of 16%.
Differentiate the budget deficit from the national debt : Between 2007 and 2009 the U.S. economy experienced a severe recession. In an effort to stimulate the economy, the federal government passed a stimulus package.
Develop the review and modification policy portion of isp : Develop the review and modification policy portion of your ISP to ensure it is a ‘living document'.
What would be weight used for equity in computation of wacc : What would be the weight used for equity in the computation of OMG’s WACC?
What are the pros and cons of democratic principles : At the time of the drafting of the Arizona Constitution, the Progressive Party and Movement was very influential in American politics.
What would be katydid before-tax component cost of debt : What would be Katydid’s before-tax component cost of debt?
Compare the work-incentive effects of the two options : A firm wants to offer paid sick leave to its workers, but it wants to encourage them not to abuse it by being unnecessarily absent.
Security issues with the companys wireless network : What wireless security policies and management tools will you recommend and why? I want references in APA format.

Reviews

Write a Review

Financial Management Questions & Answers

  Company receive if all shares sell at the expected price

A company is planning an IPO of 10 million shares. Each share is expected to sell at $10 per share. The investment banker will charge an 8% spread and incur expenses of $500,000. How much will the company receive if all shares sell at the expected pr..

  Horizontal and vertical analyses

Choose a publicly traded company. Download the latest available financial reports (balance sheet, income statement, statement of cash flows, and statement of owners' equity). CLO1, CLO2, CLO3, CLO4 Activities: Draw two (2) graphs either on paper or i..

  Calculation of betterpies wacc

What would be the weights used in the calculation of BetterPie’s WACC?

  Financial ratios has the highest weight

Which of the following financial ratios has the highest weight in Altman's Z-score estimation? If a firm decided to speed up its collection from its customers by reducing the receivables period and kept the inventory period and payable period the sam..

  How much long-term debt does the firm have

Teakap, Inc., has current assets of $ 1,456,312 and total assets of $4,812,369 for the year ending September 30, 2006. It also has current liabilities of $1,041,012, common equity of $1,500,000, and retained earnings of $1,468,347. How much long-term..

  Employee stock options representing options

Suppose you hold LLL employee stock options representing options to buy 10,400 shares of LLL stock. How many put option contracts are required?

  What is the expected return for stock with beta

If the expected return on the market is 8 percent and the risk-free rate is 4 percent, What is the expected return for a stock with a beta equal to 1.80? What is the market risk premium?

  Amount equal to the outstanding balance of the loan

Assume the homeowner borrows only an amount equal to the outstanding balance of the loan .

  Declining balance method to depreciate property

Assume Mallard uses the 125% declining balance method to depreciate property, plant and equipment. On January 1, 2012, Mallard acquired five acres of land with a building that will be used as office space and warehouse for $400,000 cash. An appraisal..

  How much can nelsons short-term debt increase

How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 1.8?

  Use social media-buzz marketing to increase sales

Recommend at least one (1) way a business with which you are familiar could use social media / buzz marketing to increase sales and awareness (e.g., social media awareness) of your products. Give your opinion on what a business needs to know about RO..

  The system requires an initial investment in net working cap

Kolby’s Korndogs is looking at a new sausage system with an installed cost of $625,000. This cost will be depreciated straight-line to zero over the project’s 5 year life, at the end of which the sausage system can be scrapped for $95,000. The sausag..

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