Consider the following information for Watson Power Company: Debt: Common stock: 4,500 8 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 104 percent of par; the bonds make semiannual payments. 103,500 shares outstanding, selling for $57 per share; the beta is 1.19. 15,000 shares of 7 percent preferred stock outstanding, currently selling for $106 per share. 9.5 percent market risk premium and 6.5 percent risk-free rate. Preferred stock: Market: Assume the company's tax rate is 33 percent. Find the WACC. 12.42% 11.85% 11.35% 11.45% 11.63%