Consider the following information for Watson Power Company:

Debt:	5,000 7.5 percent coupon bonds outstanding, $1,000 par value, 23 years to maturity, selling for 105 percent of par; the bonds make semiannual payments.
Common stock:	110,000 shares outstanding, selling for $61 per share; the beta is 1.16.
Preferred stock:	17,000 shares of 6.5 percent preferred stock outstanding, currently selling for $106 per share.
Market:	9.5 percent market risk premium and 6 percent risk-free rate.

Assume the company's tax rate is 34 percent.

Find the WACC.