Examine the following book-value balance sheet for University Products Inc. The preferred stock currently sells for $15 per share and pays a dividend of $3 a share. The common stock sells for $20 per share and has a beta of 0.6. There are 1 million common shares outstanding The market risk premium is 11%, the risk-free rate is 7%, and the firm's tax rate is 21% BOOK-VALUE BALANCE SHEET (Figures in 5 millions) Liabilities and Net Worth Assets Bonds, coupon 5%, paid annually. $ 2.0 Cash and short-term securities Accounts receivable Inventories (maturity 10 years, current yield to maturity 68) Preferred stock (par value $10 per share) 5.0 $10.0 3.0 0.2 9.0 Common stock (par value $0.20) Plant and equipment Additional paid-in stockholders' equity Retained earnings 12.8 15.0 Total $41.0 Total $41.0 a. What is the market debt-to-value ratio of the firm? b. What is University's WACC? (For all the requirements, do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) a. Market debt-to-value ratio % b. WACC %