Shy Shoes Ltd. has a bond outstanding with 7 yrs of maturity coupon 5.55% Face v

Shy Shoes Ltd. has a bond outstanding with 7 yrs of maturity coupon 5.55% Face value of $1000 market price of $920. It also has 6.2% Preferred Stock outstanding which trades at $95.21. Its BETA is estimated as 1.35. Long-Term (10 yrs) US Treasury bonds yield 4.42%. Please assume an equity risk premium of 6% and a marginal corporate tax rate of 35%. Assume a target debt ratio of 50%. What is the cost of capital for Shy Shoes Ltd?1. For the Shy Shoes problem (WACC) please assume the following weights for capital sources:Debt 50% as in original problem preferred stoxk: 10% (new) common equity remaining capital.2. For same exercise please assume a face value of preferred stock of $100 (as it is usually the case).