Consider the following information for Watson Power Co.: Debt: Common stock: 4,500 6 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 104 percent of par; the bonds make semiannual payments. 108,000 shares outstanding, selling for $60 per share; the beta is 1.18. 13,500 shares of 5 percent preferred stock outstanding, currently selling for $106 per share. 7.5 percent market risk premium and 5 percent risk-free rate, Preferred stock: Market: Assume the company's tax rate is 33 percent. Find the WACC Multiple Choice 8.9796