The earliest models of the solar system employed what Aristotle, and Plato before him, had taught was the perfect form: the circle. The simplest possible arrangement—uniform motion around a circle having Earth as its center—provided a fairly good approximation to the orbits of the Sun and the Moon, but it could not account for the observed variations in planetary brightness or their retrograde motion. Thus, a more complex model was needed to describe the motion of the planets. (Eric Chaison and Steve McMillan, Astronomy Today, 3rd ed.)
Answer

a Argument; conclusion: A more complex model . . . motion of the planets.
b Argument; conclusion: The simplest possible arrangement . . . retrograde motion.
c Nonargument.
d Argument; conclusion: The simplest possible arrangement . . . Sun and Moon.
e Argument; conclusion: The earliest models . . . the circle.

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.)