Problem 13-7 WACC (LO1) nts 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 $10 per share and has a beta of 0.9. There are 4 million common shares outstanding. The market risk premium is 8%, the risk-free rate is 4%, and the firm's tax rate is 21% Assets look $ 3.0 $20.0 Print Cash and short-term securities Accounts receivable Inventories Plant and equipment BOOK-VALUE BALANCE SHEET (Figures in 5 millions) Liabilities and Net Worth Bonds, coupon - 5%, paid annually (naturity = 10 years, current yield to maturity = 7%) Preferred stock (par value $20 per share) Common stock (par value $e.10) Additional paid-in stockholders' equity Retained earnings Total orences S . 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.) 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. Market debt-to-value ratio b. WACC %