please provide 1. market debt to value ratio 2. WACC ...
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Finance
please provide
1. market debt to value ratio
2. WACC
Examine the following book-value balance sheet for University Products Inc. The preferred stock currently sells for 515 per share and pays a dividend of $3 a share. The common stock sells for $15 per share and has a beta of 0 9 There are 1 million common shares outstanding. The market risk premium is 12%, the risk-free rate is 8% and the firm's tax rate is 21% Assets Cash and short-term Securities Accounts receivable Inventories plant and equipment $ 2.0 5.0 9. 21.0 BOOK VALUE BALANCE SHEET (Figures in a millions) Liabilities and Net Worth Bonds, coupon-pald annually (maturity - 10 years, current yield to maturity - 8) Preferred stock (par value $15 per share) Common stock (par value $0.20) Additional paid in stockholders equity Hetained earnings Total $20.0 3.0 0.2 7.0 Total $37.0 537. 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.) a. 21.19 Market debt-to-value ratio WACC b. 18.1219
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