Question: OMG Inc has four million shares of common stock outstanding
OMG Inc. has four million shares of common stock outstanding, three million shares of preferred stock outstanding, and 5,000 bonds. If the common shares are selling for $27 per share, the preferred shares are selling for $26 per share, and the bonds are selling for 108 percent of par, what weight should you use for debt in the computation of OMG’s WACC?
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