Consider the following information for Watson Power Co.: Debt: 8 Common stock: 3,000 8 percent coupon bonds outstanding, $1,000 par value, 18 years to maturity, selling for 102 percent of par; the bonds make semiannual payments. 66,000 shares outstanding, selling for $61 per share; the beta is 1.13. 10,500 shares of 7 percent preferred stock outstanding, currently selling for $104 per share. 9 percent market risk premium and 6.5 percent risk-free rate. Preferred stock: 5 Market: Assume the company's tax rate is 31 percent. Find the WACC. Multiple Choice