P14-15 Finding the WACC (LO3] Consider the following information for Watson Power Co.: Debt: Common stock: 2,500 8 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 105 percent of par, the bonds make semiannual payments. 60,000 shares outstanding, selling for $56 per share; the beta is 1.11. 8,500 shares of 7 percent preferred stock outstanding, currently selling for $106 per share. 9 percent market risk premium and 6.5 percent risk-free rate. Preferred stock: Market: Assume the company's tax rate is 33 percent. Find the WACC. Multiple Choice 11,23% 11.779