In preparing the annual profit plan for the coming year, wilkens company wants to determine the cost behavior pattern of the maintenance costs. wilkens has decided to use linear regression by employing the equation y = a + bx for maintenance costs. the prior year's data regarding maintenance hours and costs, and the results of the regression analysis are given here. hours maintenance of activity costs sum 4,480 $43,200 average 400 3,600 average cost per hour = $9.00; a = 684.65; b = 7.2884; standard error of a = 49.515; standard error of b = .12126; standard error of the estimate = 34.469; r2 = .99724. based upon the data derived from the regression analysis, 420 maintenance hours in a month would mean the maintenance costs (rounded to the nearest dollar) would be budgeted at:

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.)