Given the following information for Watson Power Co., find the WACC. Assume the company's tax rate is 21 percent. Debt: 10,000 6.4 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 108 percent of par; the bonds make semiannual payments. Common stock: 495,000 shares outstanding, selling for $63 per share; the beta is 1.15. Preferred stock: 35,000 shares of 3.5 percent preferred stock outstanding, currently selling for $72 per share. Market. 7 percent market risk premium and 3.2 percent risk-free rate. Tax rate Debt Bonds outstanding Settlement date Maturity date Annual coupon rate Coupons per year Bond price (% of par) Redemption value (% of par) Par value Common stock Shares outstanding Beta Share price Preferred stock outstanding Shares outstanding Dividend percentage Share price 21% 10,000 01/01/00 01/01/25 6.40% 2 108 100 $ 1,000 6A 495,000 1.15 63 35,000 3.50% 72