Examine the following book-value balance sheet for University Products Incorporated. The preferred stock currently sells for...

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Examine the following book-value balance sheet for University Products Incorporated. 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 1 million common shares outstanding. The market risk premium is 11%, the risk-free rate is 7%, and the firm's tax rate is 21%. Assets Cash and short-term securities Accounts receivable Inventories Plant and equipment Total $ 2.0 5.0 9.8 25.0 $41.0 a. Market debt-to-value ratio b. WACC BOOK-VALUE BALANCE SHEET (Figures in $ millions) Liabilities and Net Worth Bonds, coupon 5%, paid annually (maturity = 10 years, current yield to maturity 6%) Preferred stock (par value $10 per share) Common stock (par value $0.20) Additional paid-in stockholders' equity Retained earnings Total a. What is the market debt-to-value 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 2 decimal places. $ 10.0 3.0 0.2 12.8 15.8 $41.8 % % Examine the following book-value balance sheet for University Products Incorporated. 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 1 million common shares outstanding. The market risk premium is 11%, the risk-free rate is 7%, and the firm's tax rate is 21%. Assets Cash and short-term securities Accounts receivable Inventories Plant and equipment Total $ 2.0 5.0 9.8 25.0 $41.0 a. Market debt-to-value ratio b. WACC BOOK-VALUE BALANCE SHEET (Figures in $ millions) Liabilities and Net Worth Bonds, coupon 5%, paid annually (maturity = 10 years, current yield to maturity 6%) Preferred stock (par value $10 per share) Common stock (par value $0.20) Additional paid-in stockholders' equity Retained earnings Total a. What is the market debt-to-value 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 2 decimal places. $ 10.0 3.0 0.2 12.8 15.8 $41.8 % %