The expected return on the market is 12.46%, the risk-free rate is 4.38%, and the tax rate is 25.00%. Semper Fun Sports has 300,000 common shares outstanding that are priced at $42.70 per share and have an expected return of 16.99% and an expected real return of 14.83%. Last year, Semper Fun Sports common stock had a return of 11.56%. The company also has 400,000 shares of preferred stock outstanding that are priced at $15.57 per share and have an expected return of 13.15% and an expected real return of 11.06%. Last year, Semper Fun Sports preferred stock had a return of 8.13%. Finally, the company has 10,000 bonds outstanding with a coupon rate of 9.41%, yield-to-maturity of 4.58%, current yield of 8.43%, face value of $1,000.00, and price of $1,280.00. What is the weighted average cost of capital for Semper Fun Sports?

		11.95% (plus or minus 0.02 percent)
		10.79% (plus or minus 0.02 percent)
		11.25% (plus or minus 0.02 percent)
		10.67% (plus or minus 0.02 percent)
		None of the above is within .02 percentage points of the correct answer