(Solved): Examine the following book-value balance sheet for University Products Incorporated. The preferred ...

Examine the following book-value balance sheet for University Products Incorporated. 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 \( 0.8 \). 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 \( 21 \% \). a. What is the market debt-to-value ratio of the firm? b. What is University's WACC? Note: For all the requirements, do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.