Consider the following information for Watson Power Co.: Debt: Common stock: 5,500 6 percent coupon bonds outstanding, $1,000 par value, 19 years to maturity, selling for 104 percent of par; the bonds make semiannual payments. 132,000 shares outstanding, selling for $55 per share; the beta is 1.19. 18,000 shares of 5 percent preferred stock outstanding, currently selling for $105 per share. 7 percent market risk premium and 4.5 percent risk-free rate. Preferred stock: Market: Assume the company's tax rate is 34 percent. Find the WACC