Consider the following information for Watson Power Co.: Debt: Common stock: 5,000 7.5 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 103 percent of par; the bonds make semiannual payments. 105,000 shares outstanding, selling for $63 per share; the beta is 1.14 18,000 shares of 6 percent preferred stock outstanding, currently selling for $105 per share. 8.5 percent market risk premium and 6 percent risk-free rate. Preferred stock: Market: Assume the company's tax rate is 33 percent. Find the WACC