Consider the following information for Watson Power Co.: Debt: 5,000 8 percent coupon bonds outstanding, $1,000 par value, 18 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 1.06. Preferred stock: 15,500 shares of 7.5 percent preferred stock outstanding, currently selling for $107 per share. Market: 9.5 percent market risk premium and 7 percent risk-free rate. ________________________________ Assume the company's tax rate is 34 percent. Find the WACC.