Hint: its not 14.63%

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 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 40% BOOK -VALUE BALANCE SHEET (Figures in $ millions) Liabilities and Net Worth Bonds, coupon 5%, paid annually (maturity 1 years, current yield to maturity 6%) Preferred stock (par value $15 per share) Common stock(par value $e.10) Additional paid-in stockholders equity Retained earnings Assets Cash and short-term securities Accounts receivable Inventories Plant and equipment $. 2.0 4.0 8.0 20.0 $12.0 0.4 Total $34.e Total $34.0 a. 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.)