Find the WACC for Watson Power Co. given the following information and assuming a tax rate of 35%.

Debt: 10,000 bonds outstanding paying a 6.4% semi-annual coupon; $1,000 par value; 25 years remaining until maturity; the bonds are selling for 108% of par

Common: 495,000 shares outstanding selling for $63/share; beta = 1.15

Preferred: 35,000 shares paying a preferred dividend of $3.50/share and currently selling for $72/share

Market: 7% market risk premium; risk free rate = 3.2%