Given the following information for Lightning Power Co., find the WACC. Assume the company’s tax rate is 21 percent.

Debt: 12,000 bonds with a 4.6 percent coupon outstanding, $1,000 par value, 25 years to maturity, selling for 105 percent of par; the bonds make semiannual payments.

Common stock: 575,000 shares outstanding, selling for $81 per share; the beta is 1.04.

Preferred stock: 30,000 shares of 3.4 percent preferred stock outstanding, a $100 par value, currently selling for $94 per share.

Market: 7 percent market risk premium and 3.2 percent risk-free rate.