You are given the following information for Watson Power Co. Assume the company's tax rate is 38 percent.

Debt:7,000 6.8 percent coupon bonds outstanding, $1,000 par value, 30 years to maturity, selling for 104 percent of par; the bonds make semiannual payments.

Common stock:400,000 shares outstanding, selling for $58 per share; the beta is 1.14.Preferred stock:18,000 shares of 5 percent preferred stock outstanding, currently selling for $78 per share.

Market:7 percent market risk premium and 4.8 percent risk-free rate.

What is the company's WACC?