1. Given the following information for Watson Power Co., find the WACC. Assume the company's tax rate is 35%. 10,000 6.4 percent coupon bonds outstanding, $1,000 par value, years to maturity, selling for 108 percent of par; the bonds make semiannual payments. (hint market price = $1,000 * 1.08 = $1,080) Debt 25 495,000 shares outstanding, selling for $63 per share; the beta is Common stock 1.15. 35,000 shares of 3.5 percent preferred stock outstanding, currently selling for $72 per share. (hint: $3.5 dividend). Preferred stock Market 7 percent market risk premium and 3.2 percent risk-free rate