Consider the following information for Watson Power Co.: Debt: Common stock: Preferred stock: Market: 2,000 7.5 percent coupon bonds outstanding, $1,000 par value, 22 years to maturity, selling for 103 percent of par; the bonds make semiannual payments. 40,000 shares outstanding, selling for $58 per share; the beta is 1.07. 7,000 shares of 7 percent preferred stock outstanding, currently selling for $105 per share. 9 percent market risk premium and 7 percent risk-free rate. Assume the company's tax rate is 34 percent. Find the WACC.