You are given the following information for Watson Power Co. Assume the companys tax rate is 40 percent.

Debt:	8,000 7.5 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 104 percent of par; the bonds make semiannual payments.
Common stock:	470,000 shares outstanding, selling for $65 per share; the beta is 1.08.
Preferred stock:	25,000 shares of 3 percent preferred stock outstanding, currently selling for $85 per share.
Market:	8 percent market risk premium and 5.5 percent risk-free rate.

What is the company's WACC?