Consider the following information for Evenflow Power Co.,

Debt:4,000 7 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity,selling for 103 percent of par; the bonds make semiannual payments.

Common stock:92,000 shares outstanding, selling for $56 per share; the beta is 1.15.

Preferred stock:12,500 shares of 6.5 percent preferred stock outstanding, currently selling for $105 per share.

Market:7.5 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.)

10.28%

10.75%

10%

9.78%

9.88%