4 Saved Help 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 $20 per share and has a beta of 0.8. There are 2 million common shares outstanding. The market risk premium is 8%, the risk-free rate is 4% , and the firm's tax rate is 40 % BOOK-VALUE BALANCE SHEET (Figures in $ millions) Liabilities and Net North Assets Bonds, coupon (maturity 10 years, current yield to maturity 78) Preferred stock (par value $15 per share) Common stock (par value $0.20) Additional paid-in stockholders' equity Retained earnings 58, paid annually $20.0 3.0 Cash and short-term securities $ 3.0 Accounts receivable 6.0 0.4 11.6 Inventories 10.0 Plant and equipment 23.0 7.0 $42.0 $42.0 Total Total 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.) Market debt-to-value ratio % b. What is University's WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) WACC 5 of 10 Next >