ding the Consider the following information for Watson Power Co.: Common stock 4,500 7 percent coupon bonds outstanding, $1,000 par value. 20 years to maturity, selling for 103 percent of par, the bonds make semiannual payments. 103,500 shares outstanding, selling for $58 per share; the beta is 115 12,500 shares of 6 percent preferred stock outstanding, currently selling for $104 per share. 9 percent market risk premium and 5.5 percent risk-free Preferred stock. Market rate Assume the company's tax rate is 35 percent. Find the WACC. Multiple Choice 10.3% 10.7% 10.296