Consider the following information for Watson Power Co: Debt: 5,000 5 percent coupon bonds outstanding. $1,000 par value, 19 years to maturity, selling for 103 percent of par, the bonds make semiannual payments. Common stock: 115,000 shares outstanding, selling for $64 per share; the beta is 1.08. Preferred stock: 17,000 shares of 4 percent preferred stock outstanding, currently selling for $104 per share; par value $100. Market data: 6.5 percent market risk premium and 3.5 percent risk-free rate. Assume the company's tax rate is 31 percent. Find the WACC. (Provide your answer in decimal form).