OMG inc. has 5 million shares of common stock outstanding, 4 million shares of preferred stock...

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OMG inc. has 5 million shares of common stock outstanding, 4 million shares of preferred stock outstanding, and 6,000 bonds. Suppose the common shares are selling for $19 per share, the preferred shares are selling for $28 per share, and the bonds are selling for 108 percent of par.

What would be yhe weight used for equity in the computation of OMG's WACC? (Round answer to 2 decimal places.)

Can someone explain how you got your answer please?

OMG Inc. has 5 million shares of common stock outstanding, 4 million shares of preferred stock outstanding, and 6,000 bonds.

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Answer 1

Answer #1

capital Maunket value Equity 5,000,000 x 195 95,000,000 Poeference: 4,000,000 x 28 = 112,000,000 Debt. 6000X1000X108% = 6,480

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Answer 2

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