Consider the following information for Watson Power Company:

Debt:	5,500 5.5 percent coupon bonds outstanding, $1,000 par value, 22 years to maturity, selling for 105 percent of par; the bonds make semiannual payments.
Common stock:	110,000 shares outstanding, selling for $62 per share; the beta is 1.1.
Preferred stock:	17,000 shares of 4.5 percent preferred stock outstanding, currently selling for $107 per share.
Market:	6.5 percent market risk premium and 4.5 percent risk-free rate.

Assume the company's tax rate is 32 percent.

Find the WACC.