Consider the following information for Watson Power Company:

Debt: $5,0008$ percent coupon bonds outstanding, $$1,000$ par value, $18$ years to maturity, selling for $103$ percent of par; the bonds make semiannual payments.

Common stock: $105,000$ shares outstanding, selling for $$63$ per share; the beta is $1\mathrm{.}16.$

Preferred stock: $14,000$ shares of $7\mathrm{.}5$ percent preferred stock outstanding, currently selling for $$106$ per share.

Market: $8\mathrm{.}5$ percent market risk premium and $7\mathrm{.}5$ percent risk$-$free rate.

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

Find the WACC.

Multiple Choice

$11\mathrm{.}86\%$

$12\mathrm{.}45\%$

$11\mathrm{.}46\%$

$11\mathrm{.}36\%$

$11\mathrm{.}59\%$