Consider the following information for Evenflow Power Co.,

Debt: 3,000 8 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: 72,000 shares outstanding, selling for $62 per share; the beta is 1.17.

Preferred stock: 8,500 shares of 7 percent preferred stock outstanding, currently selling for $104 per share.

Market: 9.5 percent market risk premium and 7 percent risk-free rate.

Assume the company's tax rate is 33 percent.

Required:

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

a.) 13.17%

b.) 12.13%

c.) 12.23%

d.) 12.63%

e.) 12.32%