Consider the following information for Evenflow Power Co.,

Debt:		2,000 8.5 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 104 percent of par; the bonds make semiannual payments.
Common stock:		50,000 shares outstanding, selling for $63 per share; the beta is 1.1.
Preferred stock:		6,000 shares of 7.5 percent preferred stock outstanding, currently selling for $107 per share.
Market:		10.5 percent market risk premium and 6.5 percent risk-free rate.

Assume the company's tax rate is 33 percent.

Required:

Find the WACC. (Do not round your intermediate calculations.)

rev: 09_20_2012

12.77%

13.32%

12.54%

12.27%

12.37%