Consider the following information for Evenflow Power Co.,

Debt:		5,500 8.5 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 105 percent of par; the bonds make semiannual payments.
Common stock:		132,000 shares outstanding, selling for $56 per share; the beta is 1.15.
Preferred stock:		18,500 shares of 7.5 percent preferred stock outstanding, currently selling for $106 per share.
Market:		9 percent market risk premium and 7 percent risk-free rate.

Assume the company's tax rate is 31 percent.

Required:

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

Note: Preferred share annual dividends are quoted as a percent of par, 7% in this problem. Par for preferred stock is almost always either $25 or $100. The text (as in this problem) always uses a $100 par unless noted otherwise.

a. 12.45%

b. 11.5%

c. 11.4%

d. 11.9%

e. 11.72%