What weight should you use for debt

Assignment Help Microeconomics

Reference no: EM132136709

Question: 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 $30 per share, the preferred shares are selling for $29 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?

Reference no: EM132136709

Questions Cloud

What are the period and frequency : The time for a particular point to move from maximum displacement to zero is 0.170 s. What are the (a) period and (b) frequency

Dekkers algorithm and igloo approach : What is the difference between Dekkers Algorithm and Igloo approach? Please provide examples that can explain this.

What is the person or organization mission statement : What is the person or organization’s mission statement? What are their main sources of revenue? What are their main costs of operation?

Returns the number of ways to make change : A set of coins makes change for n if the sum of the values of the coins is n. For example, if you have 1-cent, 2-cent and 4-cent coins, the following sets make

What weight should you use for debt : 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.

Element-wise multiplication of two vectors in another vector : A multiplication (*) operators returns element-wise multiplication of two vectors in another vector. Given two sparse vectors, A and B, and a result vector C, a

How many bytes of memory can the program access : If an assembly code for a system uses 16 bits to address memory, how many bytes of memory can the program access? Is it as simple as 2^16 = 65,536 mb?

Principles of verbal communication : PRINCIPLES OF VERBAL COMMUNICATION. Why did you choose this theory or concept? What is the theory or concept important to you?

How can behavioral economics be used : In your opinion, how can behavioral economics be used for YOU as a student? How would you apply and use behavioral economics if you were a small business owner?

User Account

All Pages