Consider the following information for Evenflow Power Co.,

Debt: 5,000 5 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: 125,000 shares outstanding, selling for $62 per share; the beta is 1.2. Preferred stock: 15,500 shares of 4 percent preferred stock outstanding, currently selling for $106 per share.

Market: 7 percent market risk premium and 4 percent risk-free rate.

Assume the company's tax rate is 34 percent.

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