You are given the subsequent information for Lightning Power Co. Suppose the company's tax rate is 40 percent.
Debt:
10,000 7.7 % coupon bonds outstanding, $1,000 par value, 15 years to maturity, selling for 106 % of par; the bonds make semiannual payments.
Common stock: 490,000 shares outstanding, selling for $67 per share; the beta is 1.10.
Preferred stock:
27,000 shares of 5 % preferred stock outstanding, presently selling for $87 per share.
Market: 8% market risk premium and 5.70 percent risk-free rate.
Evaluate the company's WACC?