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OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock outstanding and 5000 bonds. Suppose the common shares sell

OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock outstanding and 5000 bonds. Suppose the common shares sell for $15 per share, the preferred shares sell for $14 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?

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