Question
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
| 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 $30 per share, the preferred shares are selling for $29 per share, and the bonds are selling for 109 percent of par. |
| What weight should you use for debt in the computation of OMGs WACC? |
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International Finance
Authors: Keith Pilbeam
4th Edition
0230362893, 978-0230362895
