29 29 P14-15 Finding the WACC [LO3] Consider the following information for Watson Power Company: Debt: Common stock: Preferred stock: es Market: 5,000 8 percent coupon bonds outstanding, $1,000 par value, 19 years to maturity, selling for 104 percent of par; the bonds make semiannual payments. 115,000 shares outstanding, selling for $65 per share; the beta is 1.06. 18,000 shares of 7.5 percent preferred stock outstanding, currently selling for $106 per share. 10 percent market risk premium and 7 percent risk-free rate. Assume the company's tax rate is 34 percent. Find the WACC.