Consider the following information for Evenflow Power Co.,

Debt:		5,500 6 percent coupon bonds outstanding, $1,000 par value, 19 years to maturity, selling for 104 percent of par; the bonds make semiannual payments.
Common stock:		121,000 shares outstanding, selling for $59 per share; the beta is 1.19.
Preferred stock:		19,500 shares of 4.5 percent preferred stock outstanding, currently selling for $105 per share.
Market:		7 percent market risk premium and 4 percent risk-free rate.

Assume the company's tax rate is 34 percent.

Required:

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

Multiple Choice

• 8.66%

• 8.33%

• 7.83%

• 7.93%

• 8.04%