Q$15.$ Finding the WACC. Given the following information for Gerken Power Co$.,$ find the WACC.

Assume the company's tax rate is $35$ percent.

Debt: $8,5007\mathrm{.}2$ percent coupon bonds outstanding, $$1,000$ par value, $25$ years to maturity,

selling for $118$ percent of par; the bonds make semiannual payments.

Common stock: $225,000$ shares outstanding, selling for $$87$ per share; beta is $1\mathrm{.}15.$

Preferred stock: $15,000$ shares of $4\mathrm{.}8$ percent preferred stock outstanding, currently selling for $$98$

per share.

Market: $7$ percent market risk premium and $3\mathrm{.}1$ percent riskfree rate.