Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text: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 are selling for $17 per share, the preferred shares are selling for $26 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
%
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