Consider the following information for Watson Power Co.:

Debt:		2,500 7 percent coupon bonds outstanding, $1,000 par value, 22 years to maturity, selling for 105 percent of par; the bonds make semiannual payments.
Common stock:		50,000 shares outstanding, selling for $65 per share; the beta is 1.17.
Preferred stock:		7,500 shares of 6 percent preferred stock outstanding, currently selling for $107 per share.
Market:		9 percent market risk premium and 5.5 percent risk-free rate.

Assume the company's tax rate is 31 percent.

Find the WACC.