The expected return on the market is 12.57%, the risk-free rate is 4.69%, and the tax rate is 21.00%. Semper Fun Sports has 300,000 common shares outstanding that are priced at $41.30 per share and have an expected return of 16.98% and an expected real return of 14.31%. Last year, Semper Fun Sports common stock had a return of 11.89%. The company also has 400,000 shares of preferred stock outstanding that are priced at $15.20 per share and have an expected return of 13.55% and an expected real return of 11.07%. Last year, Semper Fun Sports preferred stock had a return of 8.29%. Finally, the company has 10,000 bonds outstanding with a coupon rate of 9.07%, yield-to-maturity of 4.14%, current yield of 8.76%, face value of $1,000.00, and price of $1,290.00. What is the weighted average cost of capital for Semper Fun Sports? O 10.68% (plus or minus 0.02 percent) 10.64% (plus or minus 0.02 percent) O 12.18% (plus or minus 0.02 percent) O 11.04% (plus or minus 0.02 percent) None of the above is within .02 percentage points of the correct answer

The expected return on the market is 12.57 , the risk-free rate is 4.69%, and the tak rate is 21.00%. Semper fun 5 ports has 360.000 cammon shares outstanding that are priced at 14130 per whare and have an expected return of 16.95% and an expected real return of 14.31\%. Last year, Semper Fun 5ports common stock had a retum of 11.89%. The compary atse has 400,000 shares of preferred stock outstanding that are priced at 515.20 per share and have an expected return of 1355 . an expected real return of 11,07\%. Last year, Semper Fun Sports preferred stock had a return of \&.29\%. Finally, the company has Io.ooo bonds outstanding with a coupon rate of 9.97m, yield-to-m.turity of 4.14W, curtens yield of 8.76m, face value of 51,000 .60, and price of 51290.60 . What is the weighted average cost of capiral for semper fun Sports? 10 esy (gilus or minus 0 or percent) 10.64% (phes or minus 0.02 percent) 12.1 all (plus or mirus 0.02 peroent) 14.04 (plus or minus 0.02 perceni) None of the above is within of percentage poirts of the coctect anweer