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Examine the following book-value balance sheet for University Products, Inc. The preferred stock currently sells for $10 per share and the common stock for $20

Examine the following book-value balance sheet for University Products, Inc. The preferred stock currently sells for $10 per share and the common stock for $20 per share. There are 1 million common shares outstanding. BOOK VALUE BALANCE SHEET (all values in millions) Assets Liabilities and Net Worth Cash and short-term securities $ 2.0 Bonds, coupon = 5%, paid annually (maturity = 10 years, current yield to maturity = 6%) $ 10.0 Accounts receivable 6.0 Preferred stock (par value $10 per share) 2.0 Inventories 10.0 Common stock (par value $0.1) 0.1 Plant and equipment 23.0 Additional paid-in stockholders equity 19.9 Retained earnings 9.0 Total $ 41.0 Total $ 41.0 What is the capital structure of the firm on the basis of market values? (Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places and percentage values to 2 decimal places.) Security Market Value Percent Bonds $ 6.92 million 23.95 % Preferred stock 20 million % Common stock million % Total $ million %

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