Consider the following information for Watson Power Company:

Debt

$3,0007\mathrm{.}5$ percent coupon bonds outstanding. $$1,000$ par value. $22$ years to maturity. selling for $104$ percent of par: the bonds make semiannual payments.

Common stock: $63\mathrm{.}000$ shares outstanding. Selling for $$65$ per share; the beta is $1\mathrm{.}14.$

Prefered stock:

$10,000$ shares of $6\mathrm{.}5$ percent preferred stock outstanding. currently selling for $$106$ per share.

Market $9$ percent market risk premium and $6$ percent risk$-$free rate.

Assume the company's tax rate is $33$ percent.

Find the WACC.

Multiple Choice

$1079\%$

$11\mathrm{.}52\%$

$10\mathrm{.}53\%$

$10\mathrm{.}63\%$

$11\mathrm{.}03\%$