The expected return on the market is 12.45%, the risk-free rate is 4.19%, and the tax rate is 23.009. Semper Fun Sports has 300,000

common shares outstanding that are priced at $43,50 per share and have an expected return of 16.74% and an expected real return of

14.7996. Last year, Semper Fun Sports common stock had a return of 11.54%. The company also has 400,000 shares of preferred stock

outstanding that are priced at $15.76 per share and have an expected return of 13.02% and an expected real return of 11.11%. Last year,

Semper Fun Sports preferred stock had a return of 8.77%. Finally, the company has 10,000 bonds outstanding with a coupon rate of

9.91%, yield-to-maturity of 4.60%, current yield of 8.89%6, face value of $1,000.00, and price of $1,170.00. What is the weighted average

cost of capital for Semper Fun Sports?

O 11.41% (plus or minus 002 percent)

O 11.05% (plus or minus 0.02 percent)

O 11.01% (plus or minus 0.02 percent)

O 12.26% (plus or minus 0.02 percent)

O None of the above is within 02 percentage points of the correct answer