QUESTION 13 The expected return on the market is 15.49%, the risk free rate is 3.49, and the tax rate is 20%. Berkeley Studios has 750.000 common shares outstanding that are priced at $14.00 per share and have an expected return of 19.11% and an expected real return of 17.80%. Last year, Berkeley Studios common stock had a return of 21.81%. The company also has 200,000 shares of preferred stock outstanding that are priced at $20.50 per share and have an expected return of 13.82% and an expected real return of 12.57%. Last year, Berkeley Studios preferred stock had a return of 1499%. Finally, the company has 15.000 bonds outstanding with a coupon rate of 9.87% yield-to-maturity of 735, current yield of 9.35, face value of $1,000, and price of $1,060. What is the weighted average cost of capital for Berkeley Studios? a. 10.88% (plus or minus 0.05 percentage points) b. 11.50% (plus or minus 0.05 percentage points) c. 12.32% (plus or minus 0.05 percentage points) d. 12.55% (plus or minus 0.05 percentage points) e. None of the above is within 0.05 percentage points of the correct