Given the following information for Lightening Power CO., find the weighted average cost of capital (WACC). Assume the companys tax rate is 35%.

Bond	Coupon Rate	Price Quote (% of Par)	Maturity	Face Value	Coupon Payment
1	6.00%	105.86	5 years	$4,000,000	Semiannual
2	7.50%	114.52	8 years	$3,500,000	Semiannual

Common stock: 310,000 shares outstanding, selling for $57 per share; the beta is 1.05.

Preferred stock: 15,000 shares of preferred stock outstanding, currently selling for $72 per share and annual dividend is $4 per share.

Market: 7% market risk premium and 4.5% risk-free rate