Consider the following information for Watson Power Co.: 3 Debt kipped Common stock 2,000 5 percent coupon bonds outstanding, $1.000 par value, 19 years to maturity, selling for 103 percent of par, the bonds make semiannual payments. 44,000 shares outstanding, selling for $58 per share; the beta is 1.08 5,500 shares of 4 percent preferred stock outstanding, currently selling for $106 per share. 7 percent market risk premium and 4 percent risk-free rate. Preferred stock Market: Assume the company's tax rate is 32 percent. Find the WACC. O 7.47% O 7.29% 7.39% O 7.79% 7.99%