Question

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

omg inc has 5 million shares of common stock outstanding, 4 million shares of preferred stock outstanding and 6000 bonds. suppose the common share are selling for 25 per share, the preferred shares are selling for 24 per share, and the bonds are selling for 109 percent of par. what weight should use for debt in the computation of omg wacc

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Total value of:

Common stock=(5*25)=$125 million

Preferred stock=(4*24)=$96 million

Bonds=6000*(1000*109%)=$6.54 million

Total value=(125+96+6.54)=$227.54 million

Hence weight of debt=(6.54/227.54)

=2.87%(Approx).

Add a comment
Know the answer?
Add Answer to:
omg inc has 5 million shares of common stock outstanding, 4 million shares of preferred stock...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock...

    OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock outstanding, and 5,000 bonds. Suppose the common shares are selling for $26 per share, the preferred shares are selling for $25 per share, and the bonds are selling for 109 percent of par. What weight should you use for debt in the computation of OMG’s WACC? (Round your answer to 2 decimal places.) Weight used: ___.__%

  • OMG Inc has 5 million shares of common stock outstanding 4 million shares of preferred stock...

    OMG Inc has 5 million shares of common stock outstanding 4 million shares of preferred stock outstanding and 6000 bonds. Suppose the common shares are selling for $16 per share the preferred shares are selling for $25 per share and the bonds are selling for 109 percent of par. What would be the weight used for equity in the conputation of OMGs WACC?

  • OMG INC has 6 million shares of common stock outstanding 5 million shares of preferred stock...

    OMG INC has 6 million shares of common stock outstanding 5 million shares of preferred stock outstanding and 7000 bonds. Suppose the common shares are selling for $28 per share the preferred shares are selling for $27 per share and the bonds are selling for $108 percent of par. What weight should you use for debt in the computation of OMGs WACC?

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

    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....

  • OMG Inc. has 5 million shares of common stock outstanding, 4 million shares of preferred stock outstanding, and 6,00...

    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 sell for $16 per share, the preferred shares sell for $15 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? (Round your answer to 2 decimal places.)

  • OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock...

    OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock outstanding, and 5,000 bonds. Suppose the common shares sell for $16 per share, the preferred shares sell for $15 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? (Round your answer to 2 decimal places.) Weight used 1%

  • OMG Inc. has 6 million shares of common stock outstanding, 5 million shares of preferred stock...

    OMG Inc. has 6 million shares of common stock outstanding, 5 million shares of preferred stock outstanding, and 7,000 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: ____.__%

  • OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock...

    OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock outstanding, and 5,000 bonds. Suppose the common shares sell for $19 per share, the preferred shares sell for $18 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? (Round your answer to 2 decimal places.) Weight used: ____.__%

  • FarCry Industries, a maker of telecommunications equipment, has 5 million shares of common stock outstanding, 2...

    FarCry Industries, a maker of telecommunications equipment, has 5 million shares of common stock outstanding, 2 million shares of preferred stock outstanding, and 20,000 bonds. Suppose the common shares are selling for $24 per share, the preferred shares are selling for $13.00 per share, and the bonds are selling for 97 percent of par. What weight should you use for debt in the computation of FarCry’s WACC?

  • 11-10 Weight of Equity, please show formula on excel. OMG Inc. 011) as 2 million share...

    11-10 Weight of Equity, please show formula on excel. OMG Inc. 011) as 2 million share stock outstanding $27 per share, the preferred 100 percent Wildl would be Marme's component ht of Equity Farcry mdustries, a maker of telecommunications equipment, Equity FarCry Industries, a maker ofte ulion shares of common stock outstanding, 1 million shares of preferred outstanding, and 10,000 bonds. If the common shares are selling for share the preferred shares are selling for $14.50 per share, and the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT