An environmentally friendly 3 comma 000 3,000-square-foot green home (99% air tight) costs about 8 8% more to construct than a same-sized conventional home. most green homes can save 16 16% per year on energy expenses to heat and cool the living space. for a $ 270 comma 000 270,000 conventional home with a heating and cooling bill of $ 3 comma 500 3,500 per year, how much would have to be saved in energy expenses per year to justify this home (i. e., b-c ratio greater than or equal to one)? the discount rate is 12 12% per year, and the expected life of the home is 35 35 years.

Examine the following book-value balance sheet for university products inc. the preferred stock currently sells for $30 per share and pays a dividend of $3 a share. the common stock sells for $16 per share and has a beta of 0.9. there are 2 million common shares outstanding. the market risk premium is 9%, the risk-free rate is 5%, and the firm’s tax rate is 40%. book-value balance sheet (figures in $ millions) assets liabilities and net worth cash and short-term securities $ 2.0 bonds, coupon = 6%, paid annually (maturity = 10 years, current yield to maturity = 8%) $ 5.0 accounts receivable 3.0 preferred stock (par value $15 per share) 3.0 inventories 7.0 common stock (par value $0.20) 0.4 plant and equipment 21.0 additional paid-in stockholders’ equity 13.6 retained earnings 11.0 total $ 33.0 total $ 33.0 a. what is the market debt-to-value ratio of the firm? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) b. what is university’s wacc? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)