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 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%.

a.What is the market debt-to-value ratio of the firm?

b.What is University's WACC?

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 of0.8. There are'l million common shares outstanding. The market risk premium is 12%. the risk-free rate is 8%. and the rm's tax rate is 21%. lee-t- Liahilitiol and. let lIl'clrtll. Bonds, coupon - 6%, paid annually Cash and short-term securities 3 2.0 {maturity - 10 years, current yield. to maturity - T3] $10.0 Accounts receivable 5.0 Preferred stock (par value 510 per share} 3.0 Inventories 9.0 Comm stock [par value $0.40) 0.4 Plant and equipment 21.0 Additional paid-in atockholdere' equity 14.6 Retained earnings 9-0 Total $3?.0 Total $37.0 a. What Is the market debt-to-value ratio of the rm? In. 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.) Market debttcwaluo ratio WACC