Covetton House is a celebrity lifestyle brand whose flagship product is a counterintuitive yet elegant suede coaster for $175, the acquisition of which is best capped off by purchasing its limited-edition, one-of-a-kind antique sofa, which was "lovingly reclaimed from an artisanal curb in Punchbowl.. Covetton House's 61.5 million ordinary shares have a levered equity beta of 2.01 and currently trade at a price of $21.80 per share. Covetton House also has 17.9 million fixed-dividend preference shares outstanding and 3,100, zero-coupon, 5-year bonds outstanding. The preference shares pay an annual dividend of $4.43 each. These preference dividends will be paid for the foreseeable future and the preference shares can be bought today for a price of $20.75 each. Government bonds currently trade at a yield of 2.2% per annum compounded annually and the Covetton House anticipates paying taxes to the government at a marginal tax rate of 38% going forward. This is after having paid taxes on overall firm income at a rate of 45% in the most recently concluded fiscal year. Each of Covetton House's bonds trade at a price of $169,809 and have a face value of $350,000. The overall share market is expected to earn a premium of 11.4% above the the returns of risk-free investments. Which of the following is closest to Covetton House's weighted average cost of capital (WACC)? Covetton House is a celebrity lifestyle brand whose flagship product is a counterintuitive yet elegant suede coaster for $175, the acquisition of which is best capped off by purchasing its limited-edition, one-of-a-kind antique sofa, which was "lovingly reclaimed from an artisanal curb in Punchbowl.. Covetton House's 61.5 million ordinary shares have a levered equity beta of 2.01 and currently trade at a price of $21.80 per share. Covetton House also has 17.9 million fixed-dividend preference shares outstanding and 3,100, zero-coupon, 5-year bonds outstanding. The preference shares pay an annual dividend of $4.43 each. These preference dividends will be paid for the foreseeable future and the preference shares can be bought today for a price of $20.75 each. Government bonds currently trade at a yield of 2.2% per annum compounded annually and the Covetton House anticipates paying taxes to the government at a marginal tax rate of 38% going forward. This is after having paid taxes on overall firm income at a rate of 45% in the most recently concluded fiscal year. Each of Covetton House's bonds trade at a price of $169,809 and have a face value of $350,000. The overall share market is expected to earn a premium of 11.4% above the the returns of risk-free investments. Which of the following is closest to Covetton House's weighted average cost of capital (WACC)