The expected return on the market is 12.74%, the risk-free rate is 4.67%, and the tax rate is 15.00%. Semper Fun Sports has 300,000 common shares outstanding that are priced at $43.50 per share and have an expected return of 17.22% and an expected real return of 14.72%. Last year, Semper Fun Sports common stock had a return of 12.00%. The company also has 400,000 shares of preferred stock outstanding that are priced at $15.53 per share and have an expected return of 13.58% and an expected real return of 11.98%. Last year, Semper Fun Sports preferred stock had a return of 8.55%. Finally, the company has 10,000 bonds outstanding with a coupon rate of 9.55%, yield-to-maturity of 4.87%, current yield of 8.55%, face value of $1,000.00, and price of $1,250.00. What is the weighted average cost of capital for Semper Fun Sports?

		11.25% (plus or minus 0.02 percent)
		12.59% (plus or minus 0.02 percent)
		11.65% (plus or minus 0.02 percent)
		11.36% (plus or minus 0.02 percent)
		None of the above is within .02 percentage points of the correct answer