Consider the following information for Watson Power Co.:

Debt:		5,000 8.5 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 103 percent of par; the bonds make semiannual payments.
Common stock:		120,000 shares outstanding, selling for $61 per share; the beta is 1.13.
Preferred stock:		16,000 shares of 7 percent preferred stock outstanding, currently selling for $106 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.