2. Given the following information for Watson Power Co., find the WACC. Assume the company tax rate is 35 percent. Debt: 10,000 bonds with coupon rate of 7 percent. $1,000 par value, 30 years to maturity, selling for 104 percent of par (meaning it's current price is $1,040). The bonds make semiannual coupon payments. Floatation cost is $8. Preferred stock: 35,000 shares of preferred stock outstanding currently pay $3.50 per share dividends, sell for $72 per share with floatation cost of $2. Common stock: 480,000 shares outstanding, selling for $62 per share; the beta is 1.15. Market: 8 percent market risk premium and 3.5 percent risk-free rate