P14-15 Finding the WACC (LO3) Consider the following information for Watson Power Co.: Debt: Common stock: 4,000 5.5 percent coupon bonds outstanding, $1,000 par value, 22 years to maturity, selling for 105 percent of par; the bonds make semiannual payments. 100,000 shares outstanding, selling for $63 per share; the beta is 1.09. 12,000 shares of 4.5 percent preferred stock outstanding, currently selling for $108 per share. percent market risk premium and 4.5 percent risk-free rate. Preferred stock: Market: Assume the company's tax rate is 32 percent. Find the WACC