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 $16 per share and has a beta of 0.8. There are 4 million common shares outstanding. The market risk premium is 10%, the risk-free rate is 6%, and the firm's tax rate is 21%. Assets Cash and short-term securities $ 2.0 Accounts receivable 4.0 Inventories 8.0 Plant and equipment 20.0 BOOK-VALUE BALANCE SHEET (Figures in $ millions) Liabilities and Net Worth Bonds, coupon = 5%, paid annually (maturity = 10 years, current yield to maturity = 68) Preferred stock (par value $15 per share) Common stock (par value $0.10) Additional paid-in stockholders' equity Retained earnings $12.0 3.0 0.4 7.6 11.0 $34.0 $34.0 Total Total 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.) % Answer is complete but not entirely correct. a. Market debt-to-value ratio WACC 24.21 X % 10.33 % b