Consider the following information for Watson Power Company:

Debt:	5,000 7 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:	120,000 shares outstanding, selling for $63 per share; the beta is 1.09.
Preferred stock:	18,000 shares of 6 percent preferred stock outstanding, currently selling for $106 per share.
Market:	8.5 percent market risk premium and 5.5 percent risk-free rate.

Assume the company's tax rate is 33 percent.

Find the WACC.