Consider the following information for Watson Power Company Debt: Common stock: 4,500 6.5 percent coupon bonds outstanding, $1,000 par value, 22 years to maturity, selling for 104 percent of par, the bonds make semiannual payments. 94,500 shares outstanding, selling for $58 per share the beta is 1.16. 14,000 shares of 5.5 percent preferred stock outstanding, currently selling for $107 per share. 7 percent market risk premium and 5 percent risk-free rate Preferred stock Market Assume the company's tax rate is 33 percent Find the WACC Multiple Choice 8.39% 8.89 $.491