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 0.8. There are 2 million common shares outstanding. The market risk premium is 10%, the risk-free rate is 5%, and the firm's tax rate is 21%. Assets $10.0 Cash and short-term securities Accounts receivable Inventories Plant and equipment 3.0 BOOK-VALUE BALANCE SHEET (Figures in $ millions) Liabilities and Net Worth Bonds, coupon = 5%, paid annually (maturity = 10 years, current yield to maturity = 6%) Preferred stock (par value $10 per share) Common stock (par value $0.10) Additional paid in stockholders' equity Retained earnings Total $ 2.0 6.0 10.6 23.0 0.2 19.8 Total $41.0 $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 19.27% 10.33% b. WACC