Weight of Preferred Stock OMG Inc. has 4 million shares of common stock outstanding, 3 million shares

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Weight of Preferred Stock OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock outstanding, and 5,000 bonds. If the common shares sell for $17 per share, the preferred shares sell for $16 per share, and the bonds sell for 108 percent of par, what weight should you use for preferred stock in the computation of OMG's WACC? (LG4)

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Finance Applications And Theory

ISBN: 9780073530673

2nd Edition

Authors: Marcia Cornett, Troy Adair, John Nofsinger

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