Consider the following information for Watson Power Company:

Debt: $5,5008\mathrm{.}5$ percent coupon bonds outstanding, $$1,000$ par value, $19$ years to maturity, selling for $104$ percent of par; the bonds make semiannual payments.

Common stock: $132,000$ shares outstanding, selling for $$57$ per share; the beta is $1\mathrm{.}15.$

Preferred stock: $18,000$ shares of $7$ percent preferred stock outstanding, currently selling for $$105$ per share.

Market: $10$ percent market risk premium and $6\mathrm{.}5$ percent risk$-$free rate.

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

Find the WACC.

Multiple Choice

$11\mathrm{.}83\%$

$11\mathrm{.}73\%$

$12\%$

$12\mathrm{.}84\%$

$12\mathrm{.}23\%$