Consider the following information for GAP, Inc.,

Debt:		3,000 9 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 102 percent of par; the bonds make semiannual payments.
Common stock:		63,000 shares outstanding, selling for $60 per share; the beta is 1.16.
Preferred stock:		10,000 shares of 8 percent preferred stock outstanding, currently selling for $105 per share.
Market:		10 percent market risk premium and 8 percent risk-free rate.

Assume the company's tax rate is 35 percent.

Required:

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