10) Consider the following information for Watson Power Company: Debt: 4,000 8 percent coupon bonds outstanding, $1,000 par value, 19 years to maturity, selling for 103 percent of par; the bonds make semiannual payments. Common stock: 100,000 shares outstanding, selling for $63 per share; the beta is 1.08. Preferred stock: 11,500 shares of 7.5 percent preferred stock outstanding, currently selling for $105 per share. Market: 10 percent market risk premium and 6.5 percent risk-free rate. Assume the company's tax rate is 33 percent. Find the WACC.