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You are given the following information for Lightning Power Co. Assume the company's tax rate is 40 percent.

Debt:

10,000 7.7 percent coupon bonds outstanding, $1,000 par value, 15 years to maturity, selling for 106 percent 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 percent preferred stock outstanding, currently selling for $87 per share.

Market: 8 percent market risk premium and 5.70 percent risk-free rate.

What is the company's WACC?

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