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 0.7. There are 1 million common shares outstanding. The market risk premium is 9%, the risk-free rate is 5%, and the firm's tax rate is 21%.

BOOK-VALUE BALANCE SHEET(Figures in $ millions)AssetsLiabilities and Net WorthCash and short-term securities$3.0Bonds, coupon = 7%, paid annually

(maturity = 10 years, current yield to maturity = 9%)$10.0Accounts receivable5.0Preferred stock (par value $20 per share)3.0Inventories9.0Common stock (par value $0.10)0.1Plant and equipment20.0Additional paid-in stockholders' equity16.9Retained earnings7.0Total$37.0Total$37.0

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.)