Consider the following information for Evenflow Power Co., Debt: 3,500 6 percent coupon bonds outstanding, $1,000 par value, 22 years to maturity, selling for 105 percent of par; the bonds make semiannual payments. Common stock: 77,000 shares outstanding, selling for $65 per share; the beta is 1.09. Preferred stock: 12,000 shares of 5 percent preferred stock outstanding, currently selling for $106 per share. Market: 7 percent market risk premium and 5 percent risk-free rate. Assume the company's tax rate is 35 percent.
Find the WACC.
A. 9.02
B. 8.7
C. 8.2
D. 8.3
E. 8.45