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please help answer a and b thsnk you!! Examine the following book-value balance sheet for University Products Inc. The preferred stock currently sells for $15

please help answer a and b thsnk you!! image text in transcribed
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 0.6. There are 3 million common shares outstanding. The market risk premium is 9%, the risk-free rate is 5%, and the firm's tax rate is 21% BOOK-VALUE BALANCE SHEET (Figures in $ millions) Assets Liabilities and Net Worth Bonds, coupon = 84, paid annually Cash and short-term securities S 2.0 (maturity - 10 years, current yield to naturity - 9) $10.0 Accounts receivable 5.0 Preferred stock (par value $20 per share) 3.0 Inventories 9. Common stock (par value $0.10) 0.3 Plant and equipment 26.0 Additional paid in stockholders' equity 16.7 Retained earnings 12.0 Total $42.0 Total $42.0 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.) Answer is complete but not entirely correct. Market dobt-to-value ratio WACC 0.17 9.80 b. %

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