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 0.9. there are 2 million common shares outstanding. the market risk premium is 9%, the risk-free rate is 5%, and the firm’s tax rate is 40%. book-value balance sheet (figures in $ millions) assets liabilities and net worth cash and short-term securities $ 2.0 bonds, coupon = 6%, paid annually (maturity = 10 years, current yield to maturity = 8%) $ 5.0 accounts receivable 3.0 preferred stock (par value $15 per share) 3.0 inventories 7.0 common stock (par value $0.20) 0.4 plant and equipment 21.0 additional paid-in stockholders’ equity 13.6 retained earnings 11.0 total $ 33.0 total $ 33.0 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.) b. what is university’s wacc? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)

3. gains from tradeconsider two neighboring island countries called arcadia and euphoria. they each have 4 million labor hours available per month that they can use toproduce jeans, corn, or a combination of both. the following table shows the amount of jeans or corn that can be produced using 1-hour of labor.jeanscorn(bushels per hour of labor)(pairs per hour of labor)countryarcadia1224euphoria3initially, suppose arcadia uses 1 million hours of labor per month to produce jeans and 3 million hours per month to produce corn, while euphoria uses3 million hours of labor per month to produce jeans and 1 million hours per month to produce corn. consequently, arcadia produces 12 million pairs ofjeans and 72 million bushels of corn, and euphoria produces 24 million pairs of jeans and 32 million bushels of corn. assume there are no othercountries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and corn itproduces.arcadia's opportunity cost of producing 1 pair of jeans isof corn, and euphoria's opportunity cost of producing 1 pair of jeans isof corn. therefore,has a comparative advantage in the production of jeans, andv has a comparative​