Consider the following information for Watson Power Co.: Debt: 4,000 8.5 percent coupon bonds outstanding, $1,000 par value, 23 years to maturity, selling for 103 percent of par; the bonds make semiannual payments. Common stock: 84,000 shares outstanding, selling for $60 per share; the beta is 1.11. Preferred stock: 14,000 shares of 7.5 percent preferred stock outstanding, currently selling for $106 per share. Market: 9 percent market risk premium and 6.5 percent risk-free rate. Assume the company's tax rate is 34 percent. Find the WACC.