Australia is a major producer of agricultural and dairy products and exports coffee, tea, spices, and milk products to the united states. the united states is the world's third largest supplier of machinery and exports heavy machinery to australia. what explains the trade equation between australia and the united states? a. tariff barriers determine the flow of goods and services between nations. b. countries are simultaneously encouraging exports and discouraging imports. c. first entrants to the industry ensure their nations have the first-mover advantages. d. nations with an absolute advantage in producing certain goods trade them for goods produced by other countries. e. gold and silver are the mainstays of national wealth and essential to vigorous commerce.

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.)