Consider the following information for Watson Power Company:

Debt:	2,000 6 percent coupon bonds outstanding, $1,000 par value, 17 years to maturity, selling for 105 percent of par; the bonds make semiannual payments.
Common stock:	48,000 shares outstanding, selling for $55 per share; the beta is 1.14.
Preferred stock:	6,500 shares of 4.5 percent preferred stock outstanding, currently selling for $106 per share.
Market:	8 percent market risk premium and 4.5 percent risk-free rate.

Assume the company's tax rate is 35 percent.

Find the WACC.