Information on Gerken Power Co., is shown below. Assume the company's tax rate is 30 percent.

Debt:8,700 8 percent coupon bonds outstanding, $1,000 par value, 23 years to maturity, selling for 104 percent of par; the bonds make semiannual payments.

Common stock:212,000 shares outstanding, selling for $83.20 per share; beta is 1.17.Preferred stock:12,200 shares of 5.85 percent preferred stock outstanding, currently selling for $97.80 per share.

Market:7.1 percent market risk premium and 4.9 percent risk-free rate.

Required:

Calculate the company's WACC.