Connect Only Problem 11-7 Weight of Preferred Stock (LG11-4) OMG Incorporated has 5 million shares of...

Transcribed Image Text:

Connect Only Problem 11-7 Weight of Preferred Stock (LG11-4) OMG Incorporated has 5 million shares of common stock outstanding, 4 million shares of preferred stock outstanding, and 6,000 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? Note: Round your answer to 2 decimal places. Weight used % Connect Only Problem 11-7 Weight of Preferred Stock (LG11-4) OMG Incorporated has 5 million shares of common stock outstanding, 4 million shares of preferred stock outstanding, and 6,000 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? Note: Round your answer to 2 decimal places. Weight used %