Use for preferred stock in the computation of WACC

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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 sell for $17 per share, the preferred shares sell for $16 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 %

Reference no: EM131057853

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