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Examine the following book-value balance sheet for University Products Inc. The preferred stock currently sells for $15 per share and pays a dividend of $3

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Examine the following book-value balance sheet for University Products Inc. The preferred stock currently sells for $15 per share and pays a dividend of $3 a share. The common stock sells for $16 per share and has a beta of 0.8. There are 4 million common shares outstanding. The market risk premium is 10%, the risk-free rate is 6%, and the firm's tax rate is 21%. Assets Cash and short term securities Accounts receivable Inventories plant and equipment 5 2.0 4.0 8.0 20.0 BOOK-VALUE BALANCE SHEET (Figures in Sillions) Liabilities and Net Worth Bonds, coupon = 5, paid annually (naturity 10 years, current yield to natursty ) Preferred stock (par value $15 per share) Comeon Stock (par Valve 30.10) Additional paid in stockholdersity Metalne carines Total $12.0 3.0 0.4 26 1. 3340 Total M. a. What is the market debt-to-value ratio of the firm? b. What is University's WACC? (For all the requirements, do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) a. Mare debt to value to WACC b

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