Consider the following information for Evenflow Power Co.,

Debt:		5,000 9 percent coupon bonds outstanding, $1,000 par value, 17 years to maturity, selling for 103 percent of par; the bonds make semiannual payments.
Common stock:		105,000 shares outstanding, selling for $60 per share; the beta is 1.17.
Preferred stock:		17,500 shares of 7.5 percent preferred stock outstanding, currently selling for $105 per share.
Market:		10 percent market risk premium and 7 percent risk-free rate.

Assume the company's tax rate is 31 percent.

Required:

Find the WACC.

Multiple Choice

• 12.31%

• 13.21%

• 12.07%

• 12.57%

• 12.17%