Problem:

Consider the following information for Evenflow Power Co., Debt: 5,000 8.5 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 103 percent of par; the bonds make semiannual payments. Common stock: 120,000 shares outstanding, selling for $55 per share; the beta is 1.16. Preferred stock: 18,000 shares of 7.5 percent preferred stock outstanding (note: multiply this percentage in decimal format times 100 to get the dividend), currently selling for $104 per share. Market: 9 percent market risk premium and 7 percent risk-free rate. Assume the company's tax rate is 33 percent.

Required:

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

11.92%

11.52%

12.54%

11.42%

11.65%