Consider the following information for Watson Power Co.: Debt: Common stock: 5,500 8 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 104 percent of par, the bonds make semiannual payments. 121,000 shares outstanding, selling for $64 per share the beta is 1.06. 17,500 shares of 7 percent preferred stock outstanding, currently selling for $105 per share. 10 percent market risk premium and 7 percent risk-free rate. Preferred stock: Market Assume the company's tax rate is 34 percent. Find the WACC