Consider the following information for Watson Power Company:

Debt:	4,500 8.5 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 103 percent of par; the bonds make semiannual payments.
Common stock:	103,500 shares outstanding, selling for $60 per share; the beta is 1.08.
Preferred stock:	15,500 shares of 7.5 percent preferred stock outstanding, currently selling for $105 per share.
Market:	9 percent market risk premium and 7 percent risk-free rate.

Assume the company's tax rate is 33 percent.

Find the WACC.

Multiple Choice

11.42%

11.2%

12.3%

11.3%

11.7%