I am looking for the Bond-with-Warrants' COST OF CAPITAL. please show your steps to arrive at the correct answer. thank you!

Preissle Company wants to sell some 20-year, annual interest, $1,000 par value bonds. Its stock sells for $42 per share, and each bond would have 75 warrants attached to it, each exercisable into one share of stock at an exercise price of $54. The warrants expire in 5 years. The firm's straight bonds yield 10%. Each warrant is expected to have a market value of \$2.00. The company's stock is expected to grow at 7% indefinitely. What is the bond-with-warrants' cost of capital? a. 10.00% b. 11.45% c. 14.83% d. 15.00% e. 19.66%