Consider the following information for Evenflow Power Co.,
Debt: 5,000 6 percent coupon bonds outstanding, $1,000 par value, 18 years to maturity, selling for 104 percent of par; the bonds make semiannual payments.
Common stock: 100,000 shares outstanding, selling for $56 per share; the beta is 1.11.
Preferred stock: 16,000 shares of 5 percent preferred stock outstanding, currently selling for $105 per share.
Market: 7 percent market risk premium and 4 percent risk-free rate.
Assume the company's tax rate is 31 percent.
Required:
Find the WACC. (Do not round your intermediate calculations.)