Consider the following information for Watson Power Company:

Debt: 2,500 6 percent coupon bonds outstanding, $1,000 par value, 23 years to maturity, selling for 104 percent of par; the bonds make semiannual payments.

Common stock: 60,000 shares outstanding, selling for $61 per share; the beta is 1.13.

Preferred stock: 7,500 shares of 5.5 percent preferred stock outstanding, currently selling for $106 per share.

Market: 6.5 percent market risk premium and 5.5 percent risk-free rate.

Assume the company's tax rate is 34 percent.

Find the WACC.