Consider the following information for Watson Power Co.:

Debt:		6,000 6.5 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 102 percent of par; the bonds make semiannual payments.
Common stock:		126,000 shares outstanding, selling for $62 per share; the beta is 1.06.
Preferred stock:		19,000 shares of 5 percent preferred stock outstanding, currently selling for $104 per share.
Market:		7.5 percent market risk premium and 4.5 percent risk-free rate.

Assume the company's tax rate is 33 percent.

Find the WACC.