Chapter 13 Homework 6 Help Saved 5 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 9%, the risk-free rate is 5%, and the firm's tax rate is 40%. 10 points BOOK-VALUE BALANCE SHEET (Figures in millions) Liabilities and Net Worth Bonds, coupon7, paid annually (maturity 10 years, current yield to maturity- 86) $15.0 Preferred stock (par value $20 per share) Common stock (par value $0.10) Additional paid-in stockholders' equity Retained earnings Assets Cash and short-term securities 1.0 Accounts receivable Inventories Plant and equipment eBook 4.0 8.0 20.0 3.0 0.2 5.0 $33.0 Ask Print Total $33.0 Total References 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