You are given the following information concerning Parrothead Enterprises:

Debt:	10,000 6.9percent coupon bonds outstanding, with 15 years to maturity and a quoted price of 104. These bonds pay interest semiannually.
Common stock:	275,000 shares of common stock selling for $68.50 per share. The stock has a beta of .85 and will pay a dividend of $3.25 next year. The dividend is expected to grow by 5 percent per year indefinitely.
Preferred stock:	8,000 shares of 4.9 percent preferred stock selling at $94 per share.
Market:	12 percent expected return, a risk-free rate of 3.5 percent, and a 35 percent tax rate.

Calculate the WACC for Parrothead Enterprises.