You are looking at the following information:

Debt:		2,000 5.5 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 103 percent of par; the bonds make semiannual payments.
Common stock:		42,000 shares outstanding, selling for $62 per share; the beta is 1.16.
Preferred stock:		5,500 shares of 4 percent preferred stock outstanding, currently selling for $104 per share.
Market:		7 percent market risk premium and 3.5 percent risk-free rate.

The company is in the 34 percent tax rate bracket based on its corporate income.

Required:

Find the WACC. (Do not round your intermediate calculations.)

rev: 09_20_2012

7.46%

8.27%

7.65%

7.56%

7.96%