Given the following information for Janicek Power Co., find the WACC. Assume the companys tax rate is 35 percent.

Debt:6,500 8.5 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 104 percent of par; the bonds make semiannual payments.

Common Stock:150,000 shares outstanding, selling for $78 per share; beta is 1.15.

Preferred Stock:10,000 shares of 6.25 percent preferred stock outstanding, currently selling for $80 per share.

Market:8 percent market risk premium and 5.25 percent risk-free rate.