Consider the following information for Watson Power Co.: Debt: Common stock: 2,000 5.5 percent coupon bonds outstanding, $1,000 par value, 22 years to maturity, selling for 104 percent of par; the bonds make semiannual payments. 48,000 shares outstanding, selling for $56 per share; the beta is 1.08. 7,000 shares of 4.5 percent preferred stock outstanding, currently selling for $106 per share. 7.5 percent market risk premium and 4 percent risk-free rate. Preferred stock: Market: Assume the company's tax rate is 33 percent. Find the WACC. 7.9% 7.69% 8.43% 7.79% 8.19% Lannister Manufacturing has a target debt-equity ratio of 0.51. Its cost of equity is 16 percent, and its cost of debt is 9 percent. If the tax rate is 34 percent, what is the company's WACC? Multiple Choice 9.34% 10.87% 11.97% O 12.6% 13.23%