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 $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

Q: Novak Corporation earned $371,000 during a period when it had an average of 100,000 shares of common…

A: Formula: Earnings per share = ( Net income - Total preferred dividends ) / Total outstanding shares

Q: Market Basket, Inc., has 125,000 shares of common stock outstanding at a price of $43 a share. They…

A: The weight of the preferred stock is the amount of preferred stock divided by the total capital.

Q: Gamma Corporation has 250,000 ordinary shares issued and outstanding during the year. It has annual…

A: Number of shares = 250000 Sales = P 1750000 Share price = P 21 Sales per share of similar firm = P…

Q: WhackAmOle has 2 million shares of common stock outstanding, 1.5 million shares of preferred stock…

A: WACC (weighted average cost of capital) refers to the average cost that is paid by a company to…

Q: FarCry Industries, a maker of telecommunications equipment, has 6 million shares of common stock…

A: The following information is provided in the question: Common stock outstanding=6 million Preferred…

Q: The book value of a company is $15 per share and the total commonstockholders’ equity is $45…

A: Common stock is the share of a company that gives ownership to a portion of the company. Companies…

Q: FarCry Industries, a maker of telecommunications equipment, has 3 million shares of common stock…

A: The Weights are the proportion in which funds are invested as a source of funds in business. The…

Q: Howard Corporation had 10,000 shares of common stock outstanding at the beginning of the year. On…

A:

Q: OMG Inc. has 5 million shares of common stock outstanding, 4 million shares of preferred stock…

A: Debt is the obligation for the company reported in the balance sheet of the company.

Q: A firm has $5,760,000 in its common stock account and $57,600,000 in its paid in capital account.…

A: Common stock consist of the par value of the share and paid-in capital is the excess amount on par…

Q: FarCry Industries, a maker of telecommunications equipment, has 3 million shares of common stock…

A: The weights are proportion in which sources of funds are employed in the capital structure. Weighted…

Q: FarCry Industries, a maker of telecommunications equipment, has 2 million shares of common stock…

A: Given, Common stock outstanding = 2 million Preferred stock outstanding = 1 million Number of bonds…

Q: Bill's Boards has 6.5 million shares of common stock outstanding, 5.5 million shares of preferred…

A: WACC is the weighted average cost of capital. It is the discount rate which is used for discounting…

Q: A firm has 1 million shares outstanding with a book value per share of $10 per share. The stock…

A: The weighted average cost of capital (WACC) is a calculation of a firm's cost of capital

Q: National City Bank has 704,800,000 shares of common stock outstanding that are currently selling for…

A: Given data; number of shares = 704,800,000 current share price = $ 59.85 Net income = $…

Q: Creation Landscaping has 1,000 bonds outstanding that are selling for $1,280 each. The company also…

A: Bonds outstanding = 1000 Preferred stock outstanding = 2000 Preferred stock price = 27.20 Common…

Q: Masterson, Inc., has 7 million shares of common stock outstanding. The current share price is $73,…

A: Book Weight = Book Value / Total Value  Market Value Weight = Market Value / Total Value

Q: MV corporation has debt with market value of $101 million, common equity with a book value of $102…

A: WACC means weighted average cost of capital.

Q: Blossom Corporation earned $352,000 during a period when it had an average of 100,000 shares of…

A: Incremental shares = [(Market price - option price)/market price] x no. of warrant = [(15-10)/15] x…

Q: OMG Inc. has 7 million shares of common stock outstanding, 5 million shares of preferred stock…

A: Given, Common stock outstanding = 7 million Preferred stock outstanding = 5 millin Number of bonds =…

Q: Masterson, Inc., has 8 million shares of common stock outstanding. The current share price is $82,…

A: Different securities are issued by firm to arrange or get the funds for the business. These…

Q: National City Bank has 686,900,000 shares of common stock outstanding that are currently selling for…

A: The question is based on the concept of Financial Management.

Q: Team Sports has 4.9 million shares of common stock outstanding, 2.9 million shares of preferred…

A: The question is related to Cost of Capital. The weight will be calculated based on market value.…

Q: WhackAmOle has 4 million shares of common stock outstanding, 3.0 million shares of preferred stock…

A: Debt is the obligation of the company. It is reported in the balance sheet of the company.

Q: Covid Contractors has 500,000 shares of common stock outstanding, 200,000 shares of preferred stock…

A:

Q: Howat Corporation earned $360,000 during a period when it had an average of 100,000 shares of common…

A: Net income of the corporation=$360,000 Number of common shares outstanding=100,000 Number of…

Q: Harper Industries has $300 million of common equity on its balance sheet; its stock price is $80 per…

A: Book Value of common equity= $300,000,000 Market Value (MVA)= $50,000,000 Price per share= $80 per…

Q: Masterson, Inc., has 5 million shares of common stock outstanding. The current share price is $77,…

A: Since you have asked multiple questions, we will solve one question for you (the second one).  If…

Q: WhackAmOle has 4 million shares of common stock outstanding, 3.0 million shares of preferred stock…

A: It is given that,Total number of common stock outstanding are 4,000,000 shares.Price of each common…

Q: The Gable Inn is an all-equity firm with 16,000 shares outstanding at a value per share of $14.50.…

A: In the given question we need to calculate the number of shares of stock will be outstanding once…

Q: Amigo Software Inc. has total assets of $834,000, current liabilities of $155,000, and long-term…

A: A type of publicly traded security that provides ownership and voting rights to its holder is term…

Q: OMG Inc. has 7 million shares of common stock outstanding, 5 million shares of preferred stock…

A: Weight of debt=Debt(Common stock+Preferred stock+Debt)×100

Q: FarCry Industries, a maker of telecommunications equipment, has 2 million shares of common stock…

A: Market value = Debt + Equity + Preferred stock Market value = (10,000*$1000*98%) + (2,000,000*$27) +…

Q: Kawther Inc. has net income of $200,000, average equity/ordinary shares outstanding of 40,000, and…

A: Earnings per share = (Net Income - preferred dividend) /ordinary shares outstanding

Q: Big Data Ltd has 7,500 shares of common stock outstanding at a price of $18 a share. It also has…

A: WACC = (Weight of debt * after tax cost of debt) + (Weight of preferred * Cost of preferred) +…

Q: Company E has 4 million shares of stock outstanding, 1 million shares of preferred stock, and 20,000…

A: Number of common shares = 4 million Common share price = $28 Number of preferred shares = 1 million…

Q: JS Corporation has 9 million shares of common stock outstanding, 250,000 shares of RM6 annual…

A: Computation of cost of debt is as follows: Face value =RM 1000Current price =RM 930Annual coupon…

Q: ViewPoints Security's financial statements, which were constructed a few days ago, report the…

A: Financial ratios are the measures that are used to evaluate the financial performance and position…

Q: FarCry Industries, a maker of telecommunications equipment, has 5 million shares of common stock…

A: Number of common stocks = 5 million Number of preferred stocks = 2 million Number of bonds = 20000…

Q: MV Corporation has debt with market value of $97 million, common equity with a book value of $105…

A: Total market value of firms assets = Market value of debt + Market value of equity + Market value of…

Q: A firm has 12,000 shares of common stock outstanding with a market value of $41 per share. There are…

A: To Find: Weight of Preferred stock

Q: Masterson, Inc., has 8 million shares of common stock outstanding. The current share price is $74,…

A: Market value of equity = no. of share * market price per share Market value of equity = 8 million *…

Q: FarCry Industries, a maker of telecommunications equipment, has 6 million shares of common stock…

A: The weighted average cost of capital is the firm's average cost of capital from all sources of funds…

Q: A corporation has total assets of $85 million and total liabilities of$5 million. If the corporation…

A: The value of the total shareholders' fund on the balance sheet date is called the book value of the…

Q: Ames, Inc., has a current stock price of $58. For the past year, the company had net income of…

A: Stockholders are the investors who invest their funds into the company by purchasing the stocks of…

Q: Harper Industries has $900 million of common equity on its balance sheet; its stock price is $20 per…

A: The Common Equity on the Balance sheet date is $ 900 million. As common equity is given, it has been…