You are given the following information for Watson Power Co. Assume the company’s tax rate is 38 percent.
Debt: 9,000 7.6 percent coupon bonds outstanding, $1,000 par value, 30 years to maturity, selling for 105 percent of par; the bonds make semi annual payments.
Common stock: 480,000 shares outstanding, selling for $66 per share; the beta is 1.09.
Preferred stock: 26,000 shares of 4 percent preferred stock outstanding, currently selling for $86 per share.
Market: 9 percent market risk premium and 5.6 percent risk-free rate.
What is the company's WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
WACC %