Consider the following information for Watson Power Company: Debt: 5,500 6 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 105 percent of par; the bonds make semiannual payments. Common stock: 115,500 shares outstanding, selling for $58 per share; the beta is 1.18. Preferred stock: 17,500 shares of 5 percent preferred stock outstanding, currently selling for $108 per share. Market: 7 percent market risk premium and 5 percent risk-free rate. Assume the company's tax rate is 31 percent. Find the WACC. Multiple Choice 9.04% 8.24% 8.5% 8.34% 8.74%