OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock outstanding, and 5 thousand bonds. If the common shares sell for $17 per share, the preferred shares sell for $126 per share, and the bonds sell for 117% of par ($1000), what weight should you use for preferred stock in the computation of OMG's WACC?

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The Answer of OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock outstanding, and 5 thousand bonds. If the common shares sell for $17 per share, the preferred shares sell for $126 per share, and the bonds sell for 117% of par ($1000), what weight should you use for preferred stock in the computation of OMG's WACC?

OMG Inc Has 4 Million Shares of Common Stock Outstanding, 3