Consider the following information for Watson Power Company:

Debt:	5,500 8 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 102 percent of par; the bonds make semiannual payments.
Common stock:	132,000 shares outstanding, selling for $64 per share; the beta is 1.16.
Preferred stock:	16,000 shares of 7 percent preferred stock outstanding, currently selling for $104 per share.
Market:	8.5 percent market risk premium and 6 percent risk-free rate.

Assume the company's tax rate is 34 percent.

Find the WACC.