Consider the following information for Evenflow Power Co.,

Debt:		3,000 5 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 102 percent of par; the bonds make semiannual payments.
Common stock:		63,000 shares outstanding, selling for $63 per share; the beta is 1.14.
Preferred stock:		11,000 shares of 4.5 percent preferred stock outstanding, currently selling for $105 per share.
Market:		6 percent market risk premium and 3.5 percent risk-free rate.

Assume the company's tax rate is 34 percent.

Required:

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

Multiple Choice

• 6.72%

• 7.43%

• 7.22%

• 6.82%

• 6.87%