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Examine the following book - value balance sheet for University Products Incorporated. The preferred stock currently sells for $ 1 5 per share and pays
Examine the following bookvalue balance sheet for University Products Incorporated. The preferred stock currently sells for $ per
share and pays a dividend of $ a share. The common stock sells for $ per share and has a beta of There are million common
shares outstanding. The market risk premium is the riskfree rate is and the firm's tax rate is
a What is the market debttovalue ratio of the firm?
b What is University's WACC?
Note: For all the requirements, do not round intermediate calculations. Enter your answers as a percent rounded to decimal
places.
a Find the Market debttovalue ratio
b Find the WACC
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