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XYZ has 500,000 common shares outstanding that are priced at $17.20 per share and have an expected return of 18.6196 and an expected real return

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XYZ has 500,000 common shares outstanding that are priced at $17.20 per share and have an expected return of 18.6196 and an expected real return of 16.79%. The company also has 800,000 shares of preferred stock outstanding that are priced at $6,50 per share and have an expected return of 14.12% and an expected real return of 12.37%. Finally, the company has 12,000 bonds outstanding with a coupon rate of 5.89%, yield-to-maturity of 8.17%, current yield of 6.93%, face value of $1,000, and price of $850. The expected return on the market is 13.98%, the risk free rate is 4.52%, and the tax rate is 10%. What is the weighted average cost of capital for XYZ? a. 11.82% (plus or minus 0.05 percentage points) 6.12.85% (plus or minus 0.05 percentage points) c. 12.38% (plus or minus 0.05 percentage points) d. 11.98% (plus or minus 0.05 percentage points) e. None of the above is within 0.05 percentage points of the correct

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