Consider the following information for Watson Power Co.:

Debt:		2,500 6 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:		50,000 shares outstanding, selling for $63 per share; the beta is 1.17.
Preferred stock:		9,000 shares of 5 percent preferred stock outstanding, currently selling for $104 per share.
Market:		8 percent market risk premium and 4 percent risk-free rate.

Assume the company's tax rate is 35 percent.

Find the WACC.