2) Reingaart Systems is expected to pay a $3.00 dividend at year end (DI S3.00), the divi- dend is expected to grow at a constant rate of 7% a year, and the common stock currently sells for $60 a share. The before-tax cost of debt is 8% , and the tax rate is 40%. The tar- get capital structure consists of 60% debt and 40% common equity. What is the compa- ny's WACC if all equity is from retained earnings? a. 7.17 % b. 7.31% c. 7.45% d. 7.68% e. 7.84%