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

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...
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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 $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
%
ces
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Transcribed Image Text: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 $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 % ces < Prev 14 of 15 Next > MacBook Air
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