Consider the following information for Watson Power Company:

Debt: $3,5007$ percent coupon bonds outstanding, $$1,000$ par value, $19$ years to maturity, selling for $105$ percent of par; the bonds make semiannual payments.

Common stock: $84,000$ shares outstanding, selling for $$56$ per share; the beta is $1\mathrm{.}17.$

Preferred stock: $11,500$ shares of $6\mathrm{.}5$ percent preferred stock outstanding, currently selling for $$108$ per share.

Market: $8\mathrm{.}5$ percent market risk premium and $6\mathrm{.}5$ percent risk$-$free rate.

Assume the company's tax rate is $34$ percent.

Find the WACC.

Multiple Choice

$10\mathrm{.}87\%$

$10\mathrm{.}47\%$

$10\mathrm{.}37\%$

$11\mathrm{.}31\%$

$10\mathrm{.}66\%$