Consider the following information for Watson Power Co.: Debt: Common stock: 5,500 8.5 percent coupon bonds outstanding, $1,000 par value, 23 years to maturity, selling for 104 percent of par; the bonds make semiannual payments. 137,500 shares outstanding, selling for $63 per share; the beta is 115. 17,500 shares of 7.5 percent preferred stock outstanding, currently selling for $106 per share. 10 percent market risk premium and 7.5 percent risk-free rate. Preferred stock: Market: Assume the company's tax rate is 33 percent. Find the WACC. Multiple Choice 12.76% 13.8% 13.04% 12.86% 13.26%