You are given the following information for Lightning Power Co. Assume the company's tax rate is 40 percent.
Debt:
10,000 7.7 percent coupon bonds outstanding, $1,000 par value, 15 years to maturity, selling for 106 percent of par; the bonds make semiannual payments.
Common stock: 490,000 shares outstanding, selling for $67 per share; the beta is 1.10.
Preferred stock:
27,000 shares of 5 percent preferred stock outstanding, currently selling for $87 per share.
Market: 8 percent market risk premium and 5.70 percent risk-free rate.
What is the company's WACC?