Consider the following information for Watson Power Co.: Debt: 3,500 5.5 percent coupon bonds outstanding, $1,000 par value, 17 years to maturity, selling for 104 percent of par; the bonds make semiannual payments. Common stock: 77,000 shares outstanding, selling for $57 per share; the beta is 1.17. Preferred stock: 12,000 shares of 4.5 percent preferred stock outstanding, currently selling for $107 per share. Market: 6 percent market risk premium and 4 percent risk-free rate. Assume the company's tax rate is 33 percent. Find the WACC.