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 .7. There are 2 million common shares outstanding. The market risk premium is 12%, the risk- free rate is 8%, and the firm's rate is 40%. a. What is the market debt-to-value ratio of the firm? Market debt ratio 22.5 % b. What is University's WACC? WACC %