Can AC and DC Share the Same Ground?

[Vinylcafe]

I am converting the lighting winding of an old Sony receiver to DC in order to use some LEDs.
Have this nifty little converter pictured below ... AC in DC out.
I want to take the negative DC output and solder it right to the same terminal strip that the original common AC output of the transformer went to.
Terminal strip (also pictured) just steps down some voltages with a couple resistors for the different lights.
Is it OK to take the negative DC out and connect it to the chassis ground?
Can AC and DC live together in this case?

 

[petehall347]

it should be fine

 

[Vinylcafe]

it should be fine

Thanks Pete!
Also forgot to mention, that the 11 VAC will be split off the AC In of the pictured converter., as the 11V AC is used elsewhere in the circuit, and is not just for lightning.
However there will be no more AC on the pictured terminal strip.
The existing split of AC on that strip will be removed and connected to the "hot" side of the AC In of the converter, the other side of AC In connector will see a lead split off to common chassis ground.
Hope this all makes some sort of sense.

 

[petehall347]

a schematic diagram would be much easier to understand .

 

[petehall347]

were the original lamps grounded to chassis ? if not keep it same .