Consider the following information for Watson Power Co.:

Debt:		3,000 5.5 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 103 percent of par; the bonds make semiannual payments.
Common stock:		75,000 shares outstanding, selling for $63 per share; the beta is 1.11.
Preferred stock:		11,000 shares of 4.5 percent preferred stock outstanding, currently selling for $105 per share.
Market:		7 percent market risk premium and 3.5 percent risk-free rate.

Assume the company's tax rate is 33 percent.

Find the WACC.