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= The Sunland Products Co. currently has debt with a market value of $300 million outstanding. The debt consists of 9 percent coupon bonds (semiannual

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= The Sunland Products Co. currently has debt with a market value of $300 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 $1.434.63 per bond. The firm also has an issue of 2 million preferred shares outstanding with a market price of $10 per share. The preferred shares pay an annual dividend of $1.20. Sunland also has 14 million shares of common stock outing 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 divilis expected to increase by 5 percent per year forever. If Sunland is subject to a 40 percent marginal tax rate, then what is the firm's weighted average cost of capital? Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) Calculate the weights for debt common equity, and preferred equity, (Round intermediate calculations and final answers to 4 decimal places, eg, 1.2514 Debt Preferred equity Common equity Calculate the cost of debt. (Round Intermediate calculations to 4 decimal places 1.2514 and final answer to 2 decimal places es 15.25%) Cost of debt e Textbook and Media Calculate the cost of preferred equity. (Round Intermediate calculations to 4 decimal places 1.2514 and final answer to 2 decimal places, s. 15.25 Cost of preferred equity Calculate the cost of common equity. (Round intermediate calculations to 4 decimal placet, ag. 1.2514 and final answer to declinat places 15%) Cost of common equity eTextbook and Media What is the firm's weighted average cost of capital? (Round Intermediate calculations to decimal places 1.3554 answer to 2 decimal placeres 15.25%) WACC %

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