Luxury Real Estate Development would like to take advantage of the upcoming face-to-face classes and would like to build a DormTel near the school. The company is expecting to generate an income of 5% on this project. The Company needs Php50M. The business is planning to raise a capital by issuing Php10M bonds and Php40M Preferred shares. Given the market condition and the credit and investment quality of the company, the cost of capital on these securities could be pegged at 6% and 5% p.a., respectively. Assume the tax rate is 30%. What is the weighted average cost of capital?

Group of answer choices

4.85%

4.84%

4.82%

4.83%