Consider the following information for Watson Power Company:

Debt:	3,000 6.5 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 102 percent of par; the bonds make semiannual payments.
Common stock:	63,000 shares outstanding, selling for $57 per share; the beta is 1.09.
Preferred stock:	10,000 shares of 5.5 percent preferred stock outstanding, currently selling for $105 per share.
Market:	7.5 percent market risk premium and 5.5 percent risk-free rate.

Assume the company's tax rate is 34 percent.

Find the WACC.