Rebuilt and delivered five pianos in January to customers who paid $19,200 in cash. Received a $570 deposit from a customer who wanted her piano rebuilt. Rented a part of the building to a bicycle repair shop; received $850 for rent in January. Received $7,200 from customers as payment on their accounts. Received an electric and gas utility bill for $510 to be paid in February. Ordered $890 in supplies. Paid $1,240 on account in January. Received from the home of Stacey Eddy, the major shareholder, a $980 tool (equipment) to use in the business in exchange for 100 shares of $1 par value stock. Paid $15,000 in wages to employees who worked in January. Declared and paid a $2,100 dividend (reduce Retained Earnings and Cash). Received and paid cash for the supplies in (f).

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.)