Debt: 5,500 7.5 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 105 percent of par; the bonds make semiannual payments. Common stock: 132,000 shares outstanding, selling for $57 per share; the beta is 1.11. Preferred stock: 18,000 shares of 6.5 percent preferred stock outstanding, currently selling for $106 per share. Market: 8.5 percent market risk premium and 6 percent risk-free rate. Assume the company's tax rate is 31 percent. What is the WAAC?