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 0.7. There are 2 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 $ 1.0 $ BOOK-VALUE BALANCE SHEET (Figures in 5 millions) Liabilities and Net Worth Bonds, coupon = 7%, paid annually (maturity = 10 years, current yield to maturity = 8%) Preferred stock (par value $10 per share) Common stock (par value $0.10) Additional paid in stockholders' equity Retained earnings Total Cash and short-term securities Accounts receivable Inventories Plant and equipment 5. 3.e 24.e 17.8 $37.0 $32. Total Q. 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. Market debato-value ratio 0.21 12.20 % % b. 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 or O.7. There are 2 million common shares outstanding. The market risk premium is 10%, the risk-free rate is 6%, and the firm's tax rate is 27% Cash and short-ters securities Accounts receivable Inventories Plant and equipment BOOK VALUEILLANCE SHEET (Figures in 5 millions) Liabilities and Net Worth Bondscoupon 7% paid annually (maturity 10 years current yield to maturity87) Preferred stock (par value $10 per share) Common stock can value 8.10) Additional paid in stockholders equity Retained earnings 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.)