Consider the following information for Watson Power Co.: Debt: 3,500 6 percent coupon bonds outstanding, $1,000 par value, 22 years to maturity, selling for 104 percent of par; the bonds make semiannual payments. 80,500 shares outstanding, selling for $56 per share; the Common stock: beta is 1.05. Preferred stock: 10,500 shares of 5 percent preferred stock outstanding, currently selling for $107 per share. 7.5 percent market risk premium and 4 percent risk-free Market: rate. Assume the company's tax rate is 33 percent. Find the WACC.