Q7: Look at the following book-value balance sheet for SASA Inc. in Worksheet 7 . The preferred stock currently sells for $15 per share and pays a dividend of $2 a share. The common stock sells for $20 per share and has a beta of 0.7. There are 1 million common shares outstanding. The market risk premium is 10%, the risk-free rate is 6%, and the firm's tax rate is 40%. (15') a. What is the ratio of market debt value to total firm value? (15) b. What is SASA Inc's WACC? (5' extra) B. What is univertiver waced Alt inpert values are shown in purple high-tighted Antwers are hish-lighted in yellew. Other ieterim catcutations are dhplayed in ocanse. Input variables: Common Price Common Beta Common shares Market risk premium Plisk-free rate Tax rate Bond Coupon Bond Maturity YtM Face value of sebt Solution and Explanation: a. Debt-to-value ratio b. rtquey WACC Q7: Look at the following book-value balance sheet for SASA Inc. in Worksheet 7 . The preferred stock currently sells for $15 per share and pays a dividend of $2 a share. The common stock sells for $20 per share and has a beta of 0.7. There are 1 million common shares outstanding. The market risk premium is 10%, the risk-free rate is 6%, and the firm's tax rate is 40%. (15') a. What is the ratio of market debt value to total firm value? (15) b. What is SASA Inc's WACC? (5' extra) B. What is univertiver waced Alt inpert values are shown in purple high-tighted Antwers are hish-lighted in yellew. Other ieterim catcutations are dhplayed in ocanse. Input variables: Common Price Common Beta Common shares Market risk premium Plisk-free rate Tax rate Bond Coupon Bond Maturity YtM Face value of sebt Solution and Explanation: a. Debt-to-value ratio b. rtquey WACC