Debt:

2,500 6.5 percent coupon bonds outstanding, $1,000 par value, 23 years to maturity, selling for 102 percent of par; the bonds make semiannual payments.

Common stock:   

57,500 shares outstanding, selling for $55 per share; the beta is 1.13

Preferred stock:

8,500 shares of 5.5 percent preferred stock outstanding, currently selling for $105 per share.

Market:

7 percent market risk premium and 5 percent risk-free rate.

Assume the company's tax rate is 32 percent.

Required:

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