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

Debt: 10,000 bonds outstanding. $1000 par value, selling for 108% of par. YTM is 5.790%. All of the bonds pay 6.4% annual coupons, and have 25 years to maturity.

Common stock: 495,000 shares outstanding, selling for $63 per share; the beta is 1.15.

Preferred stock: 35,000 shares of preferred stock outstanding, currently selling for $72 per share; Dividend is $3.5 per share.

Market: 7% market risk premium and 3.2% risk-free rate.