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Examine the following book-value balance sheet for Toys INC. Thepreferred stock currently sells for $30 per share and pays adividend of $3 a share. The common stock sells for $20 per shareand has a beta of 0.6. There are 3 million common sharesoutstanding. The market risk premium is 9%, the risk-free rate is5%, and the firm’s tax rate is 40%.BOOK-VALUE BALANCE SHEET(Figures in $ millions)AssetsLiabilities and NetWorthCash and short-termsecurities$2.0Bonds, coupon = 8%, paidannually(maturity = 10 years, current yield to maturity = 9%)$10.0Accounts receivable5.0Preferred stock (par value $20per share)3.0Inventories9.0Common stock (par value$0.10)0.3Plant and equipment26.0Additional paid-in stockholders’equity16.7  Retained earnings12.0Total$42.0Total$42.0a. What is the market debt-to-value ratio ofthe firm? (Do not round intermediate calculations. Enteryour answer as a percent rounded to 2 decimal places.)b. What is Toys WACC? (Do not roundintermediate calculations. Enter your answer as a percent roundedto 2 decimal places.)