What would be weight used for equity in the computation

Assignment Help Financial Management

Reference no: EM131329378

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 $15 per share, the preferred shares are selling for $24 per share, and the bonds are selling for 109 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 %

Reference no: EM131329378

Questions Cloud

Calculate the average net cash flow during the month : Tierney Enterprises is constructing its cash budget. Its budgeted monthly sales are $5,000, and they are constant from month to month. 40% of its customers pay in the first month and take the 2% discount, while the remaining 60% pay in the month foll..

Create list of five ideas for a new venture : Create a list of 5 ideas for a new venture; include a brief description of each. Then select your top two ideas and write a brief paragraph about the potential of each, explaining why you think it’s a good idea. Research a franchise you might like to..

The total dollar amount return : Microsystems Common Stock is selling for $80 per share and pays a cash dividend of $2.40 per share. Calculate the current yield. If the stock is expected to rise to $86.40 in the next year, what would be. The total dollar amount return?

What is the cost of the origination fee in dollar terms : Let’s assume that you have just taken out a mortgage loan for $200,000 with an origination fee of 2 points due upfront. The mortgage term is 30 years and the mortgage rate is fixed at 4%. What is the cost of the origination fee in dollar terms?? How ..

What would be weight used for equity in the computation : 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 $15 per share, the preferred shares are selling for $24 per share, and the bonds ar..

Determine the distribution in order to minimize total cost : MPL Project- Pharmaceutical Clinical Trial Distribution. Formulate the problem to determine the distribution in order to minimize the total cost. Please provide a mathematical description of the model

Review state legal and ethical guidelines for psychologists : To prepare: Review your state's legal and ethical guidelines for psychologists. Compare these guidelines to the codes of ethics set forth by the APA and the AP-LS

Summarizing the current psychological research on the topic : Choose one of the following topics and write a 1,000-1,500 word paper summarizing the current psychological research on the topic. (Many of these topics are broad and you may choose to focus your research on a more specific area of the topic, such..

Why does descartes embark on the project of radical doubt : Why does Descartes embark on the project of radical doubt? Explain the steps of his argument in Meditation 1. How does Descartes prove that he exists? What does he determine that he is and why? Explain the steps of his argument in the first half of..

User Account

All Pages