Consider the following information for Watson Power Co.: Debt: Common stock: 3,500 7 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 102 percent of par; the bonds make semiannual payments. 73,500 shares outstanding, selling for $63 per share; the beta is 1.06 12,500 shares of 5.5 percent preferred stock outstanding, currently selling for $105 per share. 8 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. Multiple Choice 9.13%