P14-15 Finding the WACC [LO3] Consider the following information for Watson Power Co.: Debt: Common stock: 5,000 6.5 percent coupon bonds outstanding, $1,000 par value, 19 years to maturity, selling for 105 percent of par; the bonds make semiannual payments. 110,000 shares outstanding, selling for $63 per share; the beta is 1.09. 17,500 shares of 5 percent preferred stock outstanding, currently selling for $106 per share. 8 percent market risk premium and 5 percent risk-free rate. Preferred stock: Market: Assume the company's tax rate is 33 percent. Find the WACC. Multiple Choice 8.92% 9.32% 8.82% 9.66%