The expected return on the market is 12.81%, the risk-free rate is 4.36%, and the tax rate is 23.00%. Semper Fun Sports has 300,000 common shares outstanding that are priced at $40.40 per share and have an expected return of 17.29% and an expected real return of 14.55%. Last year, Semper Fun Sports common stock had a return of 11.61%. The company also has 400,000 shares of preferred stock outstanding that are priced at $15.63 per share and have an expected return of 13.07% and an expected real return of 11.23%. Last year, Semper Fun Sports preferred stock had a return of 8.47%. Finally, the company has 10,000 bonds outstanding with a coupon rate of 9.15%, yield-to-maturity of 4.34%, current yield of 8.39%, face value of $1,000.00, and price of $1,260.00. What is the weighted average cost of capital for Semper Fun Sports? '

12.03% (plus or minus 0.02 percent)

11.17% (plus or minus 0.02 percent)

10.59% (plus or minus 0.02 percent)

10.76% (plus or minus 0.02 percent)

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