Consider the following information for Watson Power Co.: Debt: 4,000 8 percent coupon bonds outstanding, $1,000 par value, 19 years to maturity, selling for 102 percent of par; the bonds make semiannual payments. Common stock: 92,000 shares outstanding, selling for $60 per share; the beta is 1.1. Preferred stock: 11,500 shares of 7 percent preferred stock outstanding, currently selling for $104 per share. Market: 9 percent market risk premium and 6.5 percent risk-free rate. Assume the company's tax rate is 35 percent. Find the WACC. Multiple Choice

11.05%

12.08%

11.13%

10.95%

11.45%