Consider the following for watson power company.

Debt

$5,5006\mathrm{.}5\%$ coupon bonds outstanding. $1,000$ par value, $22$ years to maturity, selling for $104\%$ of par, semi$-$annual payments

Common Stock

$1325,000$ shares outstanding selling for $$63/$share$.$ Beta is $1\mathrm{.}19$

Preferred Stock

$18,0006\%$ preferred stock outstanding selling for $$107/$share$.$

Market

$8\%$ market risk premium, $6\%$ risk$-$free rate

Company$$s tax rate is $34\%$

What is WACC?

$10\mathrm{.}36$

$10\mathrm{.}62$

$10\mathrm{.}97$

$10\mathrm{.}12$

$10\mathrm{.}22$ Bard