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Examine the following book-value balance sheet for UniversityProducts Inc. The preferred stock currently sells for $30 per shareand pays a dividend of $3 a share. The common stock sells for $20per share and has a beta of 0.7. There are 2 million common sharesoutstanding. The market risk premium is 12%, the risk-free rate is8%, and the firm’s tax rate is 40%. BOOK-VALUE BALANCE SHEET(Figures in $ millions) Assets Liabilities and Net Worth Cash andshort-term securities $ 1.0 Bonds, coupon = 6%, paid annually(maturity = 10 years, current yield to maturity = 8%) $ 15.0Accounts receivable 4.0 Preferred stock (par value $20 per share)3.0 Inventories 8.0 Common stock (par value $0.10) 0.2 Plant andequipment 24.0 Additional paid-in stockholders’ equity 10.8Retained earnings 8.0 Total $ 37.0 Total $ 37.0 a. What is themarket debt-to-value ratio of the firm? (Do not round intermediatecalculations. Enter your answer as a percent rounded to 2 decimalplaces.)