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please show work Consider the following information for Watson Power Co: Debt: 4,000 5.5 percent coupon bonds outstanding, $1,000 par value, 19 years to maturity,

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Consider the following information for Watson Power Co: Debt: 4,000 5.5 percent coupon bonds outstanding, $1,000 par value, 19 years to maturity, selling for 105 percent of par, the bonds make semiannual payments. Common stock: 88,000 shares outstanding, selling for $60 per share the beta is 1.2. Preferred stock: 14,000 shares of 4.5 percent preferred stock outstanding, currently selling for $108 per share, par value for the preferred stock is $100 Market data: 6.5 percent market risk premium and 3.5 percent risk-free rate. Assume the company's tax rate is 33 percent. Find the WACC 7.3% A 81% c 7.94% 7.5%

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