Consider the following information for Evenflow Power Co.,

Debt:		2,500 7 percent coupon bonds outstanding, $1,000 par value, 18 years to maturity, selling for 103 percent of par; the bonds make semiannual payments.
Common stock:		57,500 shares outstanding, selling for $64 per share; the beta is 1.13.
Preferred stock:		7,500 shares of 6 percent preferred stock outstanding, currently selling for $105 per share.
Market:		9 percent market risk premium and 5 percent risk-free rate.

Assume the company's tax rate is 34 percent.