Simantel, a marketing communications and strategy consulting firm is assisting a client to understand the effects of promotional offers on consumer purchases. they propose the company consider offering three different versions of a coupon that would be mailed to purchasers. the value of the coupon would be manipulated and the company could track the return of the coupon and how much money was spent by the purchaser. simantel recommends that the coupon offers vary between $1 and $5 and suggests three different versions: $1, $3, and $5. the client would select three groups of consumers to receive the coupon offer and a random process would be utilized to determine which coupon offer a consumer would receive. the research will provide important insights about consumer purchasing habits and which coupon offer would lead to the highest level of sales and coupon redemption. this is an example of research.

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.)