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 $15 per share and has a beta of 0.9. There are 1 million common shares outstanding. The market risk premium is 12%, the risk-free rate is 8%, and the firm's tax rate is 21% BOOK-VALUE BALANCE SHEET (Figures in 5 millions) Liabilities and Net Worth Assets Bonds, coupon 6%, paid annually Cash and short-term securities $ 2.0 Accounts receivable (eaturity 10 years, current yield to maturity - 8%) Preferred stock (par value $15 per share) $20.0 3.0 5.0 Inventories Common stock (par value 50.20) 0.2 Plant and equipment 9.0 21.0 Additional paid-in stockholders' equity Retained earnings $37.0 $37.0 Total Total e. 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.) R. Market debt-to-value ratio b VIACC 7.4 6.0