Examine the following book-value balance sheet for University Products Inc. The preferred stock currently sells for $30 per share and pays a dividend of $3 a share. The common stock sells for $16 per share and has a beta of .6. 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 40%.

BOOK-VALUE BALANCE SHEET
(Figures in $ millions)
Assets				Liabilities and Net Worth
Cash and short-term securities	$	1.0		Bonds, coupon = 7%, paid annually (maturity = 10 years, current yield to maturity = 8%)	$	10.0
Accounts receivable		5.0		Preferred stock (par value $10 per share)		3.0
Inventories		9.0		Common stock (par value $.10)		.3
Plant and equipment		20.0		Additional paid-in stockholders equity		11.7
				Retained earnings		10.0
Total	$	35.0		Total	$	35.0

What is the market debt-to-value ratio of the firm? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Market debt ratio

%

b.	What is Universitys WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

WACC

%