What weight should you use for debt in the computation of


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 $29 per share, the preferred shares are selling for $28 per share, and the bonds are selling for 108 percent of par. What weight should you use for debt in the computation of OMG’s WACC? (Round your answer to 2 decimal places.)

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Financial Management: What weight should you use for debt in the computation of
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