You are given the following information for Huntington Power Co. Assume the company's tax rate is 40 percent.

Debt: 8,000 6.9 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 105 percent of par; the bonds make semiannual payments.

Common stock:410,000 shares outstanding, selling for $59 per share; the beta is 1.15.

Market:9 percent market risk premium and 4.9 percent risk-free rate

What is the companys WACC?

6.97%?