Consider the following information for Watson Power Co.: Debt: 5,000 8.5 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 105 percent of par; the bonds make semiannual payments. Common stock: 110,000 shares outstanding, selling for $58 per share; the beta is 1.07. Preferred stock: 17,500 shares of 8 percent preferred stock outstanding, currently selling for $106 per share. Market: 10.5 percent market risk premium and 7.5 percent risk-free rate. Assume the company's tax rate is 34 percent. Find the WACC.