Mail - S X Interme X 368 Lec X Question X Him 13.2 The X Case - I X Nestle F X https://r x * WACC F X G Beta of x fs The Mo X Dashbo x + C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%2... Update : Chapter 13 Homework i Saved Help Save & Exit Submit Check my work 7 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 $2 a share. The common stock sells for $20 per share and has a beta of 0.8. There are 1 million common shares outstanding. The market risk premium is 10%, the risk-free rate is 6%, and the firm's tax rate is 21%. 5 points BOOK-VALUE BALANCE SHEET (Figures in $ millions) Skipped Assets Liabilities and Net Worth Bonds, coupon = 8%, paid annually (maturity = 10 years, Cash and short-term securities $ 1.0 current yield to maturity = 98) $ 10.0 Accounts receivable 3.0 Preferred stock (par value $20 per share) 2.0 Inventories 7.0 Common stock (par value $0. 10) 0 .1 Plant and equipment 21.0 Additional paid-in stockholders' equity 9.9 eBook Retained earnings 10 .0 Total $ 32.0 Total $ 32.0 Print 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. References a. Market debt-to-value ratio % b. WACC % Mc Graw Hill