Consider the following information for Watson Power Company:

Debt: $5,5007\mathrm{.}5$ percent coupon bonds outstanding, $$1,000$ par value, $17$ years to maturity, selling for $102$ percent of par; the bonds make semiannual payments.

Common stock: $121,000$ shares outstanding, selling for $$65$ per share; the beta is $1\mathrm{.}14.$

Preferred stock: $16,000$ shares of $6\mathrm{.}5$ percent preferred stock outstanding, currently selling for $$104$ per share.

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

Assume the company's tax rate is $32$ percent.

Find the WACC.

Multiple Choice

$11\mathrm{.}37\%$

$11\mathrm{.}84\%$

$10\mathrm{.}87\%$

$11\mathrm{.}05\%$

$10\mathrm{.}97\%$