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 0.9. There are 3 million common shares outstanding. The market risk premium is 10%, the risk-free rate is 6%, and the firms tax rate is 21%.

BOOK-VALUE BALANCE SHEET
(Figures in $ millions)
Assets					Liabilities and Net Worth
Cash and short-term securities	$	3.0			Bonds, coupon = 8%, paid annually (maturity = 10 years, current yield to maturity = 9%)	$	20.0
Accounts receivable		3.0			Preferred stock (par value $15 per share)		3.0
Inventories		7.0			Common stock (par value $0.10)		0.3
Plant and equipment		21.0			Additional paid-in stockholders equity		5.7
					Retained earnings		5.0
Total	$	34.0			Total	$	34.0

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

b. What is Universitys WACC?

(For all the requirements, do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)