The Wildhorse Products Co. currently has debt with a market value of $275 million outstanding. The debt consists of 9 percent coupon bonds (semiannual coupon payments) that have a naturity of 15 years and are currently priced at $1,445.45 per bond. The firm also has an issue of 2 million preferred shares outstanding with a market price of $19.00 per share. The preferred hares pay an annual dividend of $1.20. Wildhorse 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 4 percent per year forever. If Wildhorse is subject to a 28 percent marginal tax rate. 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 oroblem 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 (extbook version of the problem.) Your answer is correct. Calculate the cost of debt. (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.) Cost of debt %