Homework # 13 Seveu Help Save & Exit Submit Check my work 4 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 $20 per share and has a beta of 0.8. There are 2 million common shares outstanding. The market risk premium is 10%, the risk-free rate is 5%, and the firm's tax rate is 21%. 50 points BOOK-VALUE BALANCE SHEET Skipped Asseto (Figures in $ millions) Liabilities and Net Worth Bonds, coupon = 5), paid annually maturity = 10 years, current yield to maturity = 68) Preferred stock (par value $10 per share) Coumon stock (par value $0.10) Additional paid-in stockholders' equity Retained earnings Cash and short-term securities $ 2.0 Accounts receivable 6.0 Inventories 10.0 Plant and equipment 23.0 $10.0 3.0 0.2 19.8 8.0 eBook $41.0 Total Total $11.0 Print 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.) References a. Market debt-to-value ratio % b. WACC % Mc Graw Hill