The expected return on the market is 12.63%, the risk-free rate is 4.44%, and the tax rate is 20.00%. Semper Fun Sports has 300,000 common shares outstanding that are priced at $42.70 per share and have an expected return of 17.04% and an expected real return of 14.31%. Last year, Semper Fun Sports common stock had a return of 11.34%. The company also has 400,000 shares of preferred stock outstanding that are priced at $15.12 per share and have an expected return of 13.70% and an expected real return of 11.19%. Last year, Semper Fun Sports preferred stock had a return of 8.61%. Finally, the company has 10,000 bonds outstanding with a coupon rate of 9.55%, yield-to-maturity of 4.28%, current yield of 9.00%, face value of $1,000.00, and price of $1,240.00. What is the weighted average cost of capital for Semper Fun Sports?

		10.89% (plus or minus 0.02 percent)
		10.99% (plus or minus 0.02 percent)
		11.33% (plus or minus 0.02 percent)
		12.49% (plus or minus 0.02 percent)
		None of the above is within .02 percentage points of the correct answer