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The Sheridan Products Co . currently has debt with a market value of $ 2 0 0 million outstanding. The debt consists of 9 percent

The Sheridan Products Co. currently has debt with a market value of $200 million outstanding. The debt consists of 9 percent coupon bonds (semiannual coupon payments) which have a maturity of 15 years and are currently priced at $1,429.26 per bond. The firm also has an issue of 2 million preferred shares outstanding with a market price of $12 per share. The preferred shares pay an annual dividend of $1.20. Sheridan also has 14 million shares of common stock outstanding with a price of $20.00 per share. The firm is expected to pay a $2.20 common dividend one year from today, and that dividend is expected to increase by 5 percent per year forever. If Sheridan is subject to a 28 percent marginal tax rate, then what is the firms weighted average cost of capital?
1).Calculate the weigh for debt, common equity and preferred equity . Round to 4 decimal places.

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