Franktown motors is expected to have an ebit of $687,400 next year. depreciation, the increase in net working capital, and capital spending are expected to be $48,000, $7,000, and $42,000, respectively. all cash flow items are expected to grow at 6 percent per year for four years. after year 5, the cfa* is expected to grow at 2.1 percent indefinitely. the company currently has $3.2 million in debt and 250,000 shares outstanding. the company's wacc is 9.9 percent and the tax rate is 21 percent. what is the price per share of the company's stock?

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.)