Consider the following information for Evenflow Power Co.,Debt:5,500 7 percent coupon bonds outstanding, $1,000 par value, 17 years to maturity,selling for 104 percent of par; the bonds make semiannual payments.Common stock:137,500 shares outstanding, selling for $60 per share; the beta is 1.14.Preferred stock:18,000 shares of 6.5 percent preferred stock outstanding, currently selling for $106 per share.Market:8.5 percent market risk premium and 6.5 percent risk-free rate.Assume the company's tax rate is 33 percent.

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

rev: 09_20_2012

• 10.64%
• 10.89%
• 11.14%
• 10.74%